Nvidia reports record earnings quarter as China’s H200 sales freeze persists
South China Morning Post
by Ann CaoFebruary 26, 2026
AI-Generated Deep Dive Summary
Nvidia reported a record earnings quarter driven by soaring demand for its data center processors, particularly those used in artificial intelligence applications. Despite this success, the company faces challenges as it remains unclear whether sales of its H200 chips will resume in China. The H200, designed for AI and supercomputing, has been restricted by Chinese authorities, leaving Nvidia without any revenue from these sales to date. This situation underscores the complexities of navigating the ongoing US-China tech conflict.
Nvidia's dominance in the global AI boom positions it as a key beneficiary of advancements in generative AI. However, its ability to manage operations within the geopolitical tensions between the two superpowers is now a critical test. The H200's restricted sales pipeline highlights the broader challenges faced by American tech companies operating in China, where regulatory actions can significantly impact business outcomes.
This situation matters because it reflects the delicate balance of global trade and technology relations. Nvidia's reliance on China for revenue growth, combined with the complexities of US-China relations, raises questions about its future profitability and influence in the AI sector. For readers interested in world affairs and the tech industry, this story illustrates how geopolitical tensions can shape market dynamics and innovation trajectories, potentially influencing the global adoption of cutting-edge technologies like AI.
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Originally published on South China Morning Post on 2/26/2026