Jensen Huang Just Delivered a Startling Message About Nvidia's Future in China
To use an old saying, the world was Nvidia's (NASDAQ: NVDA) oyster. The company reached out to global markets as it wished, selling its top artificial intelligence (AI) chips and generating explosive growth. But in more recent times, the U.S. -- beginning with the administration of former President Joe Biden and continuing with current President Donald Trump -- has put in place certain restrictions.The Biden administration in 2022 launched export controls, limiting the types of AI chips that could be sold to the major market of China, then earlier this year issued the AI Diffusion Rule to further strengthen that position. The Trump administration recently revoked the diffusion rule, but said it would replace it with other guidelines soon. Meanwhile, Nvidia received notice several weeks ago that it could no longer sell its previously approved H20 chips to the Chinese market due to a U.S. government rule, and this resulted in a billions-dollar charge for the company.It's important to remember that in the last fiscal year -- the 12 months ended Jan. 26, 2025 -- China represented 13% of Nvidia's revenue, so if the restrictions continue at this level, they will weigh on growth. That's why investors have paid close attention to Nvidia CEO Jensen Huang's comments and plans regarding the situation. And he just delivered a startling message during the recent earnings call. Let's take a look at what it could mean for the stock.Continue reading
To use an old saying, the world was Nvidia's (NASDAQ: NVDA) oyster. The company reached out to global markets as it wished, selling its top artificial intelligence (AI) chips and generating explosive growth. But in more recent times, the U.S. -- beginning with the administration of former President Joe Biden and continuing with current President Donald Trump -- has put in place certain restrictions.
The Biden administration in 2022 launched export controls, limiting the types of AI chips that could be sold to the major market of China, then earlier this year issued the AI Diffusion Rule to further strengthen that position. The Trump administration recently revoked the diffusion rule, but said it would replace it with other guidelines soon. Meanwhile, Nvidia received notice several weeks ago that it could no longer sell its previously approved H20 chips to the Chinese market due to a U.S. government rule, and this resulted in a billions-dollar charge for the company.
It's important to remember that in the last fiscal year -- the 12 months ended Jan. 26, 2025 -- China represented 13% of Nvidia's revenue, so if the restrictions continue at this level, they will weigh on growth. That's why investors have paid close attention to Nvidia CEO Jensen Huang's comments and plans regarding the situation. And he just delivered a startling message during the recent earnings call. Let's take a look at what it could mean for the stock.
