Nvidia Hopper GPUs: China Export Ban & Write-Offs
- export controls have effectively ended the company's Hopper generation GPU business in China. Despite overall strong performance, the AI chip giant is grappling wiht the impact of these...
- CEO Jensen Huang stated that the export ban on H20 chips has concluded their Hopper data center operations in China.
- The Hopper architecture, Nvidia's previous-generation GPU/AI accelerator, was a primary export to China.While the newer Blackwell architecture is being deployed, Hopper chips remain prevalent in many server racks.
Nvidia Faces Setback as China Export Controls Halt Hopper GPU Sales
Updated May 29, 2025
Nvidia’s recent earnings call revealed that U.S. export controls have effectively ended the company’s Hopper generation GPU business in China. Despite overall strong performance, the AI chip giant is grappling wiht the impact of these restrictions on it’s AI chip exports.
CEO Jensen Huang stated that the export ban on H20 chips has concluded their Hopper data center operations in China. “We cannot reduce Hopper further to comply,” Huang said, leading to a multi-billion dollar write-off on unsellable or un-repurposeable inventory. The company is exploring limited avenues to compete, but Hopper is no longer a viable option.
The Hopper architecture, Nvidia’s previous-generation GPU/AI accelerator, was a primary export to China.While the newer Blackwell architecture is being deployed, Hopper chips remain prevalent in many server racks. The cycle of U.S. restrictions followed by Nvidia exporting slightly less powerful chips, only to face further restrictions, has seemingly reached its end. Ther appears to be no less powerful chip that Nvidia can comfortably export to China.
According to Nvidia CFO Colette Kress, the company anticipates an $8 billion revenue loss for the second quarter due to the H20 revenue shortfall. This is a importent increase compared to the $2.5 billion loss experienced in the first quarter.
Huang has voiced concerns about the trade restriction strategy, arguing that it coudl strengthen Chinese chipmakers and weaken America’s position in the AI chip market. “The question is not whether China will have AI, it already does,” huang said. “The question is whether one of the world’s largest AI markets will run on American platforms.”
Beyond the export controls discussion, Nvidia reported a record $3.8 billion in gaming revenue, boosted by recent GPU releases.The company acknowledged Blackwell’s “fastest ramp ever,” suggesting a rapid but not necessarily the largest increase.
What’s next
Despite the challenges posed by the export restrictions, nvidia appears to be navigating the situation effectively. The company is actively exploring alternative strategies to maintain its presence in the Chinese market while continuing to innovate in the AI and gaming sectors.