Investors shift focus on the impact of export restrictions to China in the wake of Nvidia’s quarterly earnings report on Wednesday.

"The $50 billion China market is effectively closed to US industry," Nvidia CEO Jensen Huang said. "The H20 export ban ended ... would have a material adverse impact on our business going forward ...

Tucked into its quarterly filing, Nvidia for the first time said restrictions on the use of open-source AI models from China could hurt its business.

Nvidia reported a nearly 70 per cent surge in quarterly revenues, beating Wall Street estimates even as the chip company suffers a big hit to its business stemming from new US restrictions on its China sales.

Revenue: NVIDIA reported revenue of $44.1 billion, marking an increase of 69% from the same quarter last year. This was largely driven by its data center revenue, which stood at $39.1 billion in Q1FY26—up 73% year-on-year (YoY).

Siemens EDA, Cadence, and Synopsys have received notices from the U.S. Commerce Department about new export controls on chip design software to China.

Though he 'trusts' President Trump, Nvidia CEO Jensen Huang says banning sales of its H20 GPUs to China means that $50 billion market 'is effectively closed to US industry.'