China Market & Revenue Impact - Nvidia's upcoming earnings face uncertainty due to the China business, particularly after reports of halted production of chips made for China [1] - The latest quarter is expected to show zero revenue from China following the H20 export ban, contrasting with an estimated $16 billion backlog when the ban was implemented [2] - Analysts do not anticipate immediate revenue recognition from China due to limited licenses granted by US officials and the quarter ending July 31st [4] - Chinese authorities are pressuring domestic firms to favor local alternatives like Huawei chips over Nvidia chips [4] Product & Supply Chain - Nvidia is reportedly slowing H20 production due to pushback in China, though the company vaguely stated it manages supply chains to address market conditions [4][5] - Nvidia is developing a new B30 chip designed for China, with potential approval for export of these advanced AI chips [5] Future Opportunities - The China market represents a $50 billion opportunity for Nvidia [6] - Potential B30 sales could replace muted H20 revenues, attracting investor attention [6]

Core Insights - Nvidia is developing a new China-specific chip called the B30, aimed at powering AI models, despite tightening export controls from the Trump administration [1][4] - The company plans to produce over 1 million B30 chips this year, which are compliant with the new export regulations [2][4] - Nvidia expects to lose $8 billion in chip sales to China this quarter due to previous restrictions [4][5] Company Strategy - The B30 chip is attracting interest from major Chinese tech companies like ByteDance, Alibaba, and Tencent [1] - Nvidia's strategy includes creating products that comply with export controls to maintain access to the Chinese market [9] - CEO Jensen Huang indicated that the company is considering new chip releases that adhere to current regulations [6][9] Financial Impact - Nvidia anticipates a revenue of approximately $45 billion in the fiscal second quarter, factoring in the $8 billion loss from the blocked H20 chip sales to China [5] - Shares of Nvidia saw a slight increase of about 1% in trading following the news [4]