Nvidia's Business Is Booming Despite Being Shut Out of China

Nvidia's business is still booming—even with the company effectively shut out of one of the world's largest markets for advanced artificial-intelligence chips.

- Dan Gallagher & Connor Hart

The chip titan has been on a roller-coaster over the past few months after the Trump administration moved to limit sales of chips to the Chinese market and then cleared the way for multibillion-dollar deals for processors in the Middle East.

Nvidia, which has emerged as one of the world's most-valuable companies because its chips provide the computing power needed in a global AI arms race, posted another quarter of record-breaking sales on Wednesday.

Revenue reached $44.06 billion for its fiscal first quarter, a 69% increase that was curtailed by Washington's new limits on China chip sales. The company was unable to ship $2.5 billion of its H20 processors and projected $8 billion in lost revenue for the current quarter due to the policy.

Nvidia's longer-term outlook in China remains a major question mark. The company admitted on Wednesday that it has "limited options" at the moment for selling its chips there, as the latest ban shuts out even the two-year-old lineup of Hopper systems.

Nvidia Chief Executive Jensen Huang warned Wednesday that limiting the ability to sell into China could have long-term implications for the industry.