NVDA · 10-Q · 2026Q3 · Full report

China Access Risk

NVIDIA CORP · 2026-08-26 · Importance 40 · Surprise 42

U.S. government licenses permitted limited H200 shipments to specified China-based customers, but PRC restrictions prevented NVIDIA from selling all licensed products. NVIDIA recorded a $0.4 billion charge in the first half of fiscal 2027 for excess H200 inventory and purchase obligations as demand diminished. Shipments under the licensing program represented less than 1% of Data Center revenue in the latest quarter, and H200 products must undergo U.S. inspection before shipment. A 25% U.S. import tariff applies to licensed H200 shipments, which NVIDIA has been unable to pass through to customers.

Key facts

• Shipments of Data Center Hopper products to China during the second quarter of fiscal year 2027 were less than 1% of Data Center revenue. source