‹ Nvidia
Ch 6 · The Durability Question
The End · Risk
Then China went to zero.
✦ The bottom line
Nvidia's China Data Center revenue went from $4.6B per quarter to zero — and the company grew 85% anyway.
↓ the brief below
China Data Center revenue · latest quarter
$0
Zero. Down from $4.6B a year earlier, after US export restrictions. Nvidia assumes zero from China going forward.
Source · 10-Q · MD&A · Q1 FY27 · Filed May 20, 2026
From the 10-Q · the China block
No shipments of Data Center Hopper products to China occurred during the quarter, compared with $4.6 billion a year earlier. Nvidia is not assuming any China data-center compute revenue in its forecast.
↳ A whole market — switched off. And the company still grew 85%. That's the bull case and the warning at once.
Source · 10-Q · MD&A — Industry Conditions · Q1 FY27 · Filed May 20, 2026
✦ Teach me
How much rides on a handful of customers
Nvidia's Data Center revenue is 92% of total. Inside that, a handful of cloud giants () account for roughly half. Lose one big buyer, lose a lot at once.
Wall Street calls this
Customer concentration
Tells you how *fragile* the boom is. A few customers cutting orders moves the whole story.
From the 10-Q · the concentration risk
A small number of large customers, including hyperscale cloud customers, account for a substantial portion of our revenue. The loss of one or more major customers could materially harm our results.
↳ In English: half the revenue from a handful of cloud giants — and those same giants are building their own AI chips to escape paying Nvidia.
Source · 10-Q · Risk Factors · Q1 FY27 · Filed May 20, 2026
Watch
China revenue zeroed. Customers building rival chips.
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Chapter 6 · RISK
The Durability Question
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