Nvidia reports minimal China data-center revenue amid export restrictions and smuggling concerns
Nvidia said its H200 chip sales to China fell below the U.S.-approved limit and projected no China data-center revenue, while U.S. officials warn of a black-market trade in its chips.
Nvidia disclosed that sales of its H200 chips to Chinese buyers accounted for less than 1% of its $89 billion data-center revenue in the second quarter, and the company does not expect any China data-center compute revenue in its forward outlook. The drop reflects both the U.S. export permission granted in December 2025 and subsequent blocks imposed by Beijing as the government seeks to reduce reliance on U.S. technology.
"Given the ongoing geopolitical uncertainty, there is no China data center compute revenue in our forward outlook," Nvidia CFO Colette Kress told analysts.
The company added that under current rules it cannot create and deliver a competitive product for wide distribution in China's data-center market with approval from both the U.S. government and the Chinese government.
U.S. authorities have reported a black-market trade in Nvidia chips, with sellers in Southeast Asian countries allegedly re-labeling and repackaging chips before sending them to China. Videos on Douyin, the Chinese version of TikTok, have shown users advertising sanctioned chips such as Nvidia's Blackwell B300 at high prices.
A Singapore-based firm, Megaspeed, which employed Alice Huang, is under investigation for potentially routing advanced Nvidia chips to data centers serving Chinese firms. Nvidia said it has no evidence of its chips being smuggled into China and that conversations between CEO Jensen Huang and customers do not involve national-security-relevant information.
The situation highlights the tension between Nvidia's commercial goals and national-security concerns in Washington that limit its ability to sell into the world's second-largest economy.