One quarter after a large H20 inventory charge, NVIDIA's (NVDA) Q2 fiscal 2026 quarterly report shows a partial reversal. The 10-Q for the period ended July 27, 2025 reports a $180 million release of previously reserved H20 inventory after the product was sold to an unrestricted customer outside China - while disclosing no H20 sales to China during the quarter.

The two facts together tell the China-split story precisely. NVIDIA found a non-China home for some restricted H20 supply, recovering $180 million of value it had reserved against. At the same time, the explicit statement of no H20 sales to China underscores that the original demand channel remains closed under prevailing rules.

“In the second quarter, we recognized approximately $650 million of H20 revenue from sales to an unrestricted customer outside of China, resulting in a $180 million release of previously reserved H20 inventory. There were no H20 sales to China-based customers in the second quarter.”— SEC filing (10-Q) source

For an earnings desk, the framing drift is the signal: management has moved from writing down China-targeted inventory to selectively realizing it elsewhere. That is a margin-recovery mechanism, not a reopening of the China market. The forward question is how much of the reserved supply can be redirected, and whether policy shifts change the China line at all.

The quarterly report is on sec.gov, located through SEC filings, the SEC filing data API & evidence index. Read the reserve-release and the no-sales-to-China statements side by side - the pair is the cleanest contemporaneous read on the H20 situation.