NVDA · 10-K · 2026A · Full report

Export Controls / Regulatory Risk

NVIDIA CORP · 2026-02-25 · Importance 78 · Surprise 100

In April 2025 the U.S. Government informed NVIDIA that a license was required for exports of its H20 product to China, and NVIDIA recorded a $4.5 billion charge in Q1 FY2026 for excess H20 inventory and purchase obligations as demand diminished. In August 2025 the U.S. Government granted licenses permitting shipment of certain H20 products to certain China-based customers, generating approximately $60 million in H20 revenue under those licenses. In February 2026 the U.S. Government granted a license allowing small shipments of H200 to specific China-based customers, but no revenue has been generated to date and shipments require U.S. inspection and will be subject to a 25% tariff upon importation into the U.S. Management highlights that export licensing and related restrictions materially affected inventory provisioning, revenue timing, and incurred charges in FY2026.

Key facts

In April 2025, the U.S. government informed NVIDIA that a license is required for exports of the H20 product into the China market.
In August 2025, the U.S. government granted licenses that allowed NVIDIA to ship certain H20 products to certain China-based customers.
In February 2026, the U.S. government granted a license that would allow NVIDIA to ship small amounts of H200 products to specific China-based customers.
The H200 license requires that H200s go through an inspection process in the United States prior to any shipment to the customer.
Any H200 shipped under the new licensing program will be subject to a 25% tariff upon importation into the United States.
To date, NVIDIA has not generated any revenue under the H200 licensing program.
Macroeconomic factors such as tariffs, inflation, interest rate changes, capital market volatility, global supply chain constraints, and geopolitical developments have direct and indirect impacts on NVIDIA's results of operations and demand for products.

Impact estimates

metric	direction	stage	expected	basis
revenue	negative	contingent	—	In April 2025, the U.S. government informed NVIDIA that a license is required for exports of the H20 product into the China market.
revenue	positive	realized	—	In August 2025, the U.S. government granted licenses that allowed NVIDIA to ship certain H20 products to certain China-based customers.
revenue	positive	realized	—	In February 2026, the U.S. government granted a license that would allow NVIDIA to ship small amounts of H200 products to specific…
revenue	negative	contingent	—	The H200 license requires that H200s go through an inspection process in the United States prior to any shipment to the customer.
operating_income	negative	probable	—	Any H200 shipped under the new licensing program will be subject to a 25% tariff upon importation into the United States.