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Nvidia generates $60 million in revenue from H20 AI chips
Thursday, February 26, 2026 at 02:06 PM
Nvidia has reportedly generated $60 million in revenue from its H20 AI GPU, a chip specifically designed to comply with United States export regulations for the Chinese market.
Context
Nvidia generated $60 million in revenue from its H20 AI chips during the fiscal quarter ending January 2026, marking a sharp contrast to earlier market expectations. This figure represents a significant shortfall compared to previous analyst projections and management hints that suggested the China-specific GPUs could generate between $2 billion and $5 billion in quarterly revenue. Despite the U.S. government granting export licenses for the compliant hardware in mid-2025, the low intake suggests that "sizable purchase orders" have failed to materialize as anticipated.
The lackluster performance signals a potential "trust gap" within the Chinese market, where major tech firms appear to be pivoting toward domestic silicon alternatives to mitigate future regulatory risks. While Nvidia successfully navigated trade restrictions to offer the H20, the delay in approvals may have permanently shifted local demand. However, this regional headwind remains masked by Nvidia’s broader dominance; the company still reported a record $68.1 billion in total quarterly revenue, driven by unprecedented global demand for its flagship Blackwell and Hopper architectures.
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