Paris
CNN
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The CEO said Thursday that Chipmaker Nvidia will remove the Chinese market from its revenue and profit forecasts following the imposition of strict US restrictions on chip sales to China.
Nvidia CEO Jensen Huang was asked if the US would lift export controls after trade talks with China in London this week. “Anna Stewart of CNN in Paris said:
In recent years, Washington has stepped up efforts to limit access to American chip-related technologies, aiming to prevent Beijing from using US innovations to enhance military and artificial intelligence capabilities.
Huang's comments highlight the impact of Washington's chip curbs on Nvidia, once the best known company for video game graphics processors. The company blew past Wall Street revenue expectations in the first quarter of 2025. This is an increase of 69% from the same period last year.
However, Nvidia missed another $2.5 billion in revenue as export restrictions prevented the H20 AI chip from being shipped to China. The company developed its chips specifically to accommodate US export controls, but was told in April that it would require a special license to do so. However, Nvidia has earned fewer hits than expected from excess inventory. This is a $4.5 billion bill compared to the expected $5.5 billion.
Kevin Hassett, director of the U.S. National Economic Council, said on Monday that the Trump administration may be open to loosening restrictions on exports of some microchips that China believes are important to its manufacturing sector. However, he added that the US will maintain a curb of “very, very high-end Nvidia” chips that can power AI systems.
On Thursday, Nvidia's Huang criticized again US Chip Export Control.
“The export control goals have not been met,” he told CNN. “Whatever the goals that were initially discussed, it doesn't seem to work. So, with all export controls, the goals must be fully expressed and tested over time.”
Last month, Huang said at a news conference in Taiwan that the US had “failed” to curb chip exports, warning that restrictions were causing more damage to American businesses than China.
Nvidia's position as an important supplier of AI chips has placed it in the middle of high-tech races between the US and China, escalating earlier this year with the arrival of cheap and sophisticated AI models from Chinese tech startup Deepseek. The Trump administration is eager to position the United States as an AI leader, and Vice President JD Vance said that “overregulation of the AI sector” could “kill transformative industries” during his remarks at the AI litigation summit held in Paris earlier this year.
Dan Ives, head of global technology research at Wedbush Securities, said export controls need to be eased to prevent China from gaining an advantage in AI.
“As the AI revolution is growing next, the current H20 ban will essentially pass a significant portion of Nvidia's business directly to Huawei with silver platters,” he said.
In the meantime, Nvidia continues to expand. We aim to solidify our position as a major AI player around the world. Huang announced on Thursday that his company will build the world The first cloud computing platform for industrial artificial intelligence applications in Europe. He also said that Blackwell Architecture will strengthen its new AI infrastructure project in Europe.
