It is not yet in Nvidia’s plans (BDR:) Develop new chip models to circumvent export restrictions on China promoted by the United States, as it has been doing in recent years. While awaiting definitions of blockages, the company sees competitors gaining market in the second largest economy in the world and seeking diversification.
“We are waiting for the US government to decide what we can or may not sell to China,” says Nvidia’s Enterprise division director for Latin America, Marcio Aguiar, in an interview with Infomoney. He explains that the escalation of trade war between the two countries has not only affected the company, but the entire ecosystem of companies that offer technology for the world’s second largest economy.
Since selling Nvidia’s most modern models to China has been banned during the government of former President Joe Biden, the company went from 95% market share to 50%. It just didn’t get smaller because the hardware developer giant decided to develop versions of its adapted chips to comply with US -defined import specifications.
First, Nvidia developed the H100 tailored and on the technological limit allowed by US export specifications to China. Came a new ban. No problem, Nvidia has developed the H20, all in the technological limit allowed for the Chinese market.
On April 9, 2025, however, Donald Trump’s management further squeezed the siege with the ban on selling the H20 chips.
The result: sales were $ 2.5 billion smaller in the first quarter, second. The company registered a low accounting of $ 4.5 billion in stranded stock. All this only April 9-27, the last day of the quarter accounted for the results.
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Part of the potential loss has even been contained. Nvidia literally dismantled some of the GPUs that used the H20 chip to take advantage of parts in products traded in other markets, explains Aguiar. You could also enjoy a part that was not even assembled.
None of this prevented the largest company in the sector in the world from showing a net profit of $ 18.77 billion in the first fiscal quarter of 2026 (the accounting year follows the standard used in the US). The adjusted value was US $ 19.89 billion, an increase of 31% over the same period of 2024. Total revenue totaled US $ 44.06 billion, growth of 69% above market expectation.
Conservative projection
But the scenario of disputes with China made the company’s predictions more conservative – the guidance Revenue, in market language, came at a level similar to current results, $ 45 billion. The value considers.
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“Whether or not the financial market, the technology market is looking at us as the thermometer,” says Aguiar. “The US government is managing to see that the mere fact that it is restricting access to the latest generations of Hardware and Software by the Chinese people is not the right way.”
On Wednesday, an American court suspended most of the global tariffs imposed by Trump in recent months. The decision does not include specific chips regulation.
While decisions do not advance, Nvidia has moved. “We feel that there is a lot of uncertainty so far in this mandate of President Trump. We are making agreements, especially with nations in the theme we call artificial intelligence sovereignty,” said Aguiar.
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The company recently announced supercomputers in the United Arab Emirates and Taiwan, as well as in a next generation of AI infrastructure in the United States. This is what has led the company to expand its ecosystem to partners such as Oracle, Softbank and OpenAi.
