Nvidia's Export Controls End Hopper GPU Sales in China, Resulting in Massive Write-Off
Nvidia's latest earnings call revealed significant losses due to export restrictions, effectively terminating their Hopper GPU line in China.
Nvidia’s latest earnings call revealed significant losses due to export restrictions, effectively terminating their Hopper GPU line in China.
During the call, CEO Jensen Huang stated:
“The H20 export ban ended our Hopper Data Center business in China. We cannot reduce Hopper further to comply. As a result, we are taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed.”
This statement outlines the constraints imposed by the U.S. export regulations which restricted Nvidia’s ability to sell their Hopper GPUs in China. Huang expressed concerns that the restrictions only bolster Chinese chipmakers while weakening American firms growing AI markets.
Colette Kress, the CFO, warned of an estimated loss of around $8 billion in H20 revenue for the next quarter, a significant increase from previous losses experienced.
In summary, Nvidia’s inability to navigate these export challenges has led to a major shift in their market strategy in China, with the Hopper line officially seeing the end of its lifecycle in this particular segment.
