Chipmaker Nvidia will exclude the Chinese market from its revenue and profit forecasts following the imposition of tough US restrictions on chip sales to China, its CEO said Thursday. Asked whether the US will lift export controls after trade talks with China in London this week, Nvidia CEO Jensen Huang told CNN’s Anna Stewart in Paris: “I’m not counting on it but, if it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market.” In recent years, Washington has stepped up efforts to restrict China’s access to American chip-related technologies, aiming to prevent Beijing from using US innovations to bolster its military and artificial intelligence capabilities. Huang’s comments underscore the impact of Washington’s chip curbs on Nvidia, a company once best known for its video game graphics processors, that has profited tremendously from growing demand for AI chips and infrastructure. The company blew past Wall Street’s revenue expectations in its first quarter of 2025, posting a 69% increase from the same period last year. But Nvidia missed out on an additional $2.5 billion in revenue because export restrictions prevented it from shipping its H20 AI chips to China. The company developed that chip specifically to accommodate US export controls but was told in April that it would need a special license to do so. Nvidia took a smaller hit than expected from the excess inventory, however: a $4.5 billion charge compared to the $5.5 billion it had expected. Kevin Hassett, director of the US National Economic Council, told CNBC Monday that the Trump administration might be open to loosening restrictions on exports of some microchips that China views as critical to its manufacturing sector. But the United States will maintain curbs on “very, very high-end Nvidia” chips that are capable of powering AI systems, he added. On Thursday, Nvidia’s Huang again criticized US chip export controls. “The goals of the export controls are not being achieved,” he told CNN. “Whatever those goals are that were being discussed initially, (they) are apparently not working. And so I think, with all export controls, the goals have to be well-articulated and tested over time.” Last month, Huang said at a news conference in Taiwan that the US curbs on chip exports were a “failure” and warned that the restrictions were doing more damage to American business than to China. Nvidia’s position as a critical supplier of AI chips has put it in the middle of the tech race between the US and China, which escalated earlier this year with the arrival of Chinese tech startup DeepSeek’s supposedly cheap yet sophisticated AI model. The Trump administration has been eager to position the US as a leader in AI, with Vice President JD Vance saying that “excessive regulation of the AI sector” could “kill a transformative industry just as it’s taking off” during remarks at the Artificial Intelligence Action Summit in Paris earlier this year. Dan Ives, global head of technology research at Wedbush Securities, said easing export controls could be necessary to prevent China from gaining an edge in AI. “With the AI Revolution hitting its next gear of growth it is important for China tech players they get access to Nvidia chips with the current H20 ban essentially handing a good portion of Nvidia’s business directly to Huawei on a silver platter,” he wrote in a June 11 industry note. In the meantime, Nvidia continues to expand – aiming to cement its place as a major AI player globally. Huang announced on Thursday that his company will build the world’s first cloud computing platform for industrial artificial intelligence applications in Europe. It also said its Blackwell architecture will power new AI infrastructure projects in Europe.
Nvidia will stop including China in its forecasts amid US chip export controls, CEO says
TruthLens AI Suggested Headline:
"Nvidia Excludes China from Revenue Forecasts Due to US Export Controls"
CNN
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TruthLens AI Summary
Nvidia has announced that it will no longer include the Chinese market in its revenue and profit forecasts, a decision driven by stringent U.S. export controls on chip sales to China. During an interview in Paris, CEO Jensen Huang indicated that while there is a possibility that these restrictions might be relaxed after recent trade talks in London, he is not counting on it. This strategic shift reflects the growing tension between the U.S. and China regarding technology and trade, particularly in the semiconductor sector. The U.S. government has increasingly restricted China's access to American chip technology, aimed at preventing the use of these innovations to enhance military and AI capabilities. Nvidia, which has transitioned from a company known primarily for gaming graphics processors to a leading supplier of AI chips, has already felt the financial impact of these restrictions. For instance, the company missed out on an estimated $2.5 billion in revenue due to the inability to ship its H20 AI chips to China, despite having developed these chips specifically to comply with U.S. export laws.
Huang has been vocal in criticizing the effectiveness of U.S. export controls, arguing that the intended goals are not being met and that the restrictions may be harming American businesses more than they are impacting China. He has previously labeled the export controls as a failure and expressed concern that they could hinder the U.S.'s competitive edge in the global AI race. The current geopolitical landscape, marked by fierce competition for technological supremacy, has led to discussions about possibly easing certain export restrictions. Analysts, including Dan Ives from Wedbush Securities, suggest that allowing access to Nvidia's chips could be crucial for preventing China from gaining an advantage in the rapidly evolving AI sector. In response to these challenges, Nvidia is expanding its operations, including a plan to establish the first cloud computing platform for industrial AI applications in Europe, thereby reinforcing its position as a key player in the global AI market.
TruthLens AI Analysis
The recent announcement by Nvidia's CEO about excluding the Chinese market from revenue forecasts highlights significant geopolitical tensions impacting the tech industry. This decision stems from stringent U.S. export controls on semiconductor technology, which aim to restrict China's access to advanced chips that could enhance its military and AI capabilities. Nvidia's position as a leading chipmaker makes this announcement particularly noteworthy, as it signifies a shift in business strategy in response to government policies.
Impact of U.S. Export Controls
Nvidia's decision reflects the broader trend of increasing restrictions by the U.S. government on technology transfers to China. The company's acknowledgment of its missed revenue opportunities due to these controls is crucial. Specifically, the inability to ship H20 AI chips to China resulted in a significant revenue loss. This suggests that while Nvidia has experienced substantial growth due to AI demand, it is still vulnerable to external policy changes.
Investor Sentiment and Market Reactions
The CEO's comments can influence investor sentiment. By stating that future forecasts will exclude China, Nvidia is managing expectations and possibly protecting its stock from volatility linked to geopolitical uncertainties. However, the potential for easing restrictions, as hinted by U.S. economic officials, introduces an element of unpredictability that could sway market reactions in the future.
Public Perception and Narrative Control
The framing of the news emphasizes the challenges posed by U.S.-China relations, potentially shaping public perception around the tech industry's future. By focusing on the loss of revenue and the need for a shift in strategy, the narrative may evoke concerns about the long-term viability of companies that are heavily reliant on Chinese markets. This could also lead to calls for further governmental action or support for domestic tech firms.
Potential Manipulation and Hidden Agendas
There is a possibility that the report serves to reinforce existing biases against China, which might not just be about business strategy but also about national security. The language used could be perceived as a subtle nudge towards a more hawkish stance on China, aligning with broader political narratives. The selective emphasis on revenue loss connected to export restrictions suggests an intention to highlight the negative implications of U.S.-China tensions.
Comparison with Other News
This news piece aligns with other reports focusing on the tech industry's adjustments due to geopolitical tensions. Similar narratives are emerging across various platforms, indicating a coordinated effort to inform the public about the challenges posed by international trade policies. This connectivity in reporting may serve to amplify the urgency of the situation in the eyes of the public and investors alike.
Implications for the Economy and Society
The broader implications of this announcement could include a shift in investment strategies within the tech sector, leading to potential job losses or reallocations as companies adapt to new restrictions. Moreover, this situation could exacerbate tensions not only in the tech industry but also in overall U.S.-China relations, affecting diplomatic discussions and economic collaborations in other sectors.
Community Support and Target Audience
The narrative may resonate more with stakeholders who are concerned about national security and technological supremacy, including policymakers and defense-oriented investors. Conversely, it might alienate segments of the tech community that advocate for global collaboration and innovation across borders.
Market Impact and Stock Reactions
This announcement is likely to have immediate effects on Nvidia's stock, as investors respond to the news about revenue forecasts. Additionally, companies within the semiconductor sector and related industries may experience volatility as market sentiment shifts in response to geopolitical developments.
Geopolitical Relevance
The news is highly relevant in the context of global power dynamics, particularly as the U.S. seeks to maintain its technological edge over China. This development is indicative of the ongoing friction between these two economic powerhouses, which is a critical aspect of contemporary geopolitics.
Use of AI in News Production
While it is unclear if AI specifically influenced this news article, the structured presentation of the information mirrors common practices in automated news reporting. The clear delineation of facts, figures, and quotes suggests a potential use of AI tools in organizing and presenting data efficiently, but without overt manipulation of the narrative.
Overall, the reliability of this news can be considered moderate, as it provides factual updates on Nvidia's strategic decisions while also reflecting broader geopolitical issues. However, the framing and potential biases in language suggest a need for critical engagement with the content to fully understand the implications of the reported developments.