At this point, it isn’t a secret that the geopolitical situation is affecting a lot of countries as the U.S. plans on lessening its reliance on the Chinese market and bringing the silicon manufacturing power back to its soil.

We saw TSMC opening a new chip plant in Arizona, but the impact of these restrictions and new policies can be seen in the predictions made by NVIDIA. While Team Green announced record gaming revenue for Q1 of 2025, it might not be the same moving forward.

NVIDIA excludes China from revenue reports

Jensen Huang, looking at the trade situation with China, told CNN that NVIDIA has decided to exclude that region from its revenue and profit forecasts. This is an impactful decision as China has resulted in $4.6 billion in revenue in the first quarter from H20 sales.

However, despite being restricted by the government from selling the H20 chips, NVIDIA might have a way to tap that market, but it again comes with some compromises. When asked if the U.S. government would remove the trade ban in the foreseeable future, he commented that he isn’t expecting it, but:

“If it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market.“

Jensen Huang, NVIDIA CEO

He further went on to comment on the impact of the export control that “The goals of the export controls are not being achieved,” followed by “And so I think, with all export controls, the goals have to be well-articulated and tested over time.“

We believe this puts into words what many are thinking about the decision of the U.S. government, and that it might be better to ease into such restrictions as both parties get greatly affected.

The doors of China’s $50 billion data center market have also been closed for NVIDIA as a result of this scenario, and the company said:

“Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.” Moreover, in the first quarter, the loss was $2.5 billion, but NVIDIA is expected to lose $8 billion in Q2.

So, unless the U.S. and China come to an arrangement that benefits them both, it seems like all the companies on both sides will have to suffer the consequences.

About the Author

Ussamah Mehmood

Ussamah works as a content writer and editor at BGFG. He is experienced in tech, hardware, gaming, and marketing.