Nvidia on track to clock $12 billion from China sales despite US export controls: Report

The Silicon Valley giant is expected to sell one million units of its new H20 chips to customers based in China, the publication reported, citing analyst forecasts. These chips are being strategically designed to bypass the export curbs, it added.

Notably, Washington has barred American tech companies from selling some advanced AI processors to clients based in China, as it is feared that Beijing could be using the technology for military applications.

Nvidia CEO Jensen Huang, in a recent earnings call, agreed that the restrictions have subjected the company to more competition in China. However, Nvidia would continue to serve customers in the country, he had noted.

Nvidia's China business

The $12-billion worth sales in China, as projected in the report for the ongoing fiscal year, would be higher than all of Nvidia's business in the country in the preceding year.

In the last fiscal year ended January 2024, Nvidia reported $10.3-billion revenue from the Chinese market.

In the most recent quarter for the company, which ended on April 28, China accounted for 9% of its total revenue. This was lower as compared to 22% in the year-ago period.

Despite China's share decreasing in the overall revenue, the net earnings from the country increased by 50% year-on-year to $2.5 billion during the quarter.

Nvidia's total revenue, from domestic and worldwide sales, tripled during Q1 to $26.04 billion, as compared to $7.19 billion recorded in the corresponding period of 2023. The company posted a profit or net income of $14.88 billion in the quarter ended April 28, as compared to $2.04 billion in the year-ago period.