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 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.