Nvidia's China Chip Sales Remain Tiny Amid Geopolitical Uncertainty

Nvidia's China chip sales remain tiny, accounting for less than 1% of data-center revenue in its latest quarter. The company shipped well under licensed amounts due to Chinese restrictions and a US inspection route that triggers a 25% tariff.

The situation could dampen AI infrastructure financing, crypto-related adoption, and cross-border CEX/DEX plans, making the news neutral-to-negative for near-term price and adoption.

Nvidia has permission to ship some H200 AI chips to China, but it has yet to turn that permission into significant sales. The company's latest quarterly filing revealed that H200 shipments under the US licensing program accounted for less than 1% of data center revenue in the quarter ended July 26.

Nvidia attributes the constrained China sales and geopolitical uncertainty to Chinese government restrictions and a cost problem. Under the current process, licensed chips must pass through the United States for inspection before reaching customers, making them subject to a 25% US import tariff.