Nvidia’s Q1 financial results are here for the 2025/2026 financial year. Inside, you just get to see the kind of revenue Nvidia makes from its various chips, particularly the biggest share of the data center, but it’s also the gaming revenue that’s seen some great boosts.

However, it has said it could have been even more, particularly if the H20 chips had not been banned from being shipped to China, limiting the AI revenue of the company. One of those dents in its revenue is apparently the charges and excess inventory it had related to the tax impact.

NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished.

Extract from Nvidia’s Financial Results for First Quarter Fiscal 2026

It states that the impact dropped the share price by around $0.15 for the non-GAAP earnings. It has been reported to modify the H20 chips for China that may pick up the lost revenue down the line, but it is rather a fluid situation, so it’s uncertain what might come next.

Further H20 revenue losses

In the outlook section, Nvidia outlines that it expects its H20 revenue to continue to diminish due to the export limitations. It projects that it will lose approximately $8 billion in Q2, as we are already partway through the quarter, which is likely a good reflection of what’s to come.

However, that doesn’t mean it’s going to be a decrease in revenue anyway. It still suggests a revenue of $45 billion is expected, increasing around 2% (with a plus or minus 2% error rate) over Q1, but definitely a lot less than it could have. Especially as it does include some new gaming hardware, as the RTX 5060 launched in Q2 and will have some sort of impact, as other RTX 50 series graphics cards did.

Revenue is expected to be $45.0 billion, plus or minus 2%. This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.

Extract from Nvidia’s Financial Results for First Quarter Fiscal 2026

About the Author

Sebastian Kozlowski

With a fascination for technology and games, Seb is a tech writer with a focus on hardware and deals. He is also the primary tester and reviewer at BGFG and PCGuide.