Nvidia will stop including China in its forecasts amid US chip export controls, CEO says

Nvidia, the prominent chipmaker, has announced that it will no longer factor the Chinese market into its revenue and profit forecasts due to stringent U.S. regulations governing chip sales to China. During an interview with CNN in Paris, CEO Jensen Huang expressed skepticism about the potential lifting of these export controls, stating, 'I’m not counting on it but, if it happens, then it will be a great bonus.' He emphasized to investors that future forecasts will omit China altogether. The U.S. has intensified its efforts to limit China's access to American chip technology, aiming to prevent the country from enhancing its military and AI capabilities with U.S. innovations. Huang's remarks highlight the significant effects of these restrictions on Nvidia, a company that has transitioned from being known primarily for its video game graphics processors to a leader in AI chip demand and infrastructure. Despite surpassing Wall Street's revenue expectations with a remarkable 69% increase in the first quarter of 2025 compared to last year, Nvidia reported a loss of $2.5 billion in potential revenue due to export limitations on its H20 AI chips intended for the Chinese market. Although the company had anticipated a $5.5 billion charge from excess inventory, the actual impact was less severe, totaling $4.5 billion. Kevin Hassett, director of the U.S. National Economic Council, indicated that the Trump administration might consider easing some export restrictions, particularly on microchips essential for China's manufacturing. However, he reiterated that high-end Nvidia chips crucial for AI systems would remain under strict controls. Huang has consistently criticized the effectiveness of U.S. export regulations, arguing that the intended goals are not being met. He remarked, 'Whatever those goals are that were being discussed initially, (they) are apparently not working.' Last month, he labeled the U.S. chip export restrictions as a 'failure,' suggesting they cause more harm to American businesses than to China. As Nvidia navigates these challenges, it remains a pivotal player in the tech competition between the U.S. and China, especially following the emergence of China's DeepSeek, a startup with a competitive AI model. The Trump administration has emphasized the importance of maintaining U.S. leadership in AI, with Vice President JD Vance warning that excessive regulation could stifle innovation in this transformative sector. In response to the evolving landscape, Nvidia is expanding its footprint, with plans to establish the first cloud computing platform dedicated to industrial AI applications in Europe. The company also announced that its Blackwell architecture will drive new AI infrastructure initiatives across the continent.