NVIDIA and AMD have agreed to give 15% of their China chip sales revenue to the U.S. government for export license approval. Analysts say NVIDIA could pass this cost to Chinese clients, potentially raising H20 prices by 18%—with only a slight gross margin impact.
Deepwater’s Gene Munster calls this a "pay-to-play" China market model, noting NVIDIA can shift costs to protect margins, with a 18% H20 hike helping maintain levels.
Wall Street expects 2026 gross margin at 71%. A 18% H20 increase would lower its segment margin to 60%, trimming overall margin to 69.3% (assuming 15% of revenue from H20).
ICgoodFind: NVIDIA H20 may rise in price due to policy costs; Chinese clients should monitor changes.
