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Nvidia resumes H200 shipments to China as guidance still assumes zero
The move tests whether Nvidia can reopen China data-center revenue without repeating past export ban-related inventory charges.
Nvidia has begun its first H200 shipments to China, a development that may matter to U.S. investors even though the reported volume is expected to be too small to change quarterly results. The key issue is that Nvidia’s outlook currently assumes data-center compute revenue from China will be zero, so bringing China back into the equation could affect how shareholders view future sales and risk.
For the first quarter of fiscal 2027, Nvidia’s earnings outlook projects second-quarter sales of roughly $91 billion, plus or minus 2%, and management’s decision to exclude China as a sales channel has left the H200 channel’s impact as an open question. The shipments also arrive as an “early test” of whether Nvidia can turn a market it had effectively valued at zero into incremental revenue, TechCrunch noted.
The stakes include the potential for fast profit swings tied to U.S. export policy. CNBC previously reported that an unexpected U.S. export ban on Nvidia’s H20 chip led the company to book a multibillion-dollar inventory charge, underscoring how quickly changes in China-related rules can affect earnings.
Nvidia said in a regulatory filing that its “effective foreclosure from the China market” helped competitors build developer and customer ecosystems to challenge it worldwide. In the company’s latest reported results, first-quarter revenue was $81.6 billion, up 85% year over year, and data-center revenue rose 92% to $75.2 billion, with gross margin at 75% on a non-GAAP basis, according to the filing described by Yahoo Finance.