Nvidia's China Chip Sales Stuck in Neutral Ahead of Trump-Xi Meeting
Nvidia's China chip sales remain minimal, accounting for less than 1% of data-center revenue in the quarter ended July 26. The company shipped well under licensed amounts due to Chinese restrictions and a 25% tariff on inspected products.
The US inspection route triggers this tariff, which Nvidia cannot pass on to buyers. As a result, the company recorded a $400 million charge for excess inventory and purchase obligations in the first half of its fiscal year.
The situation may change with the upcoming meeting between Chinese President Xi Jinping and US President Donald Trump. However, there is no announced agreement that would expand Nvidia's sales to China.