NVDA · 10-Q · 2026Q3 · Full report

Export Controls / China Access Risk

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

The U.S. government granted licenses for limited H200 shipments to specified China-based customers, but the PRC government restricted those sales and NVIDIA has been unable to sell all licensed products. NVIDIA recorded a $0.4 billion H200 excess-inventory and purchase-obligation charge in the first half of fiscal year 2027, and licensed H200 shipments represented less than 1% of recent-quarter Data Center revenue. Each licensed product must undergo U.S. inspection and is subject to a 25% tariff upon importation into the United States. NVIDIA has not passed the tariff to customers and does not expect to do so if additional China sales occur.

Key facts

• H200s shipped under the new licensing program are subject to inspection in the United States and are subject to a 25% tariff upon importation into the United States; NVIDIA has been unable to pass the tariff to customers and does not anticipate doing so. source
• After incurring the H200 charge, NVIDIA has made a fraction of the allowed shipments under the USG’s H200 licensing program and those shipments account for less than 1% of Data Center revenue in the most recent quarter. source