Nvidia CEO Jensen Huang has raised concerns over the U.S. export restrictions that have blocked the company’s AI chip sales to China, calling it a “tremendous loss” for both Nvidia and the American economy. Speaking at ServiceNow’s Knowledge 2025 conference in Las Vegas, Huang emphasized that China’s AI market is projected to reach $50 billion within the next two to three years, making it a critical revenue stream for the company.
Impact of U.S. Trade Restrictions
Last month, the Trump administration imposed new export controls, restricting shipments of Nvidia’s H20 chips to China without a license. The move resulted in a $5.5 billion quarterly charge for Nvidia, marking one of the strongest signs yet that U.S.-China trade tensions could slow the company’s historic growth.
Huang stressed that selling AI chips to China would not only boost Nvidia’s revenue but also create jobs in the U.S. and contribute to tax revenues. Despite the restrictions, he reaffirmed Nvidia’s commitment to adapting to government policies while ensuring the company remains competitive.
China’s AI Advancements and Competitive Landscape
During a tech conference in Washington, D.C., in April, Huang warned that China is not behind in AI, citing Huawei as one of the most formidable technology companies in the world. The remarks come as Chinese firms accelerate domestic AI chip production, with Huawei’s Ascend 910C chip emerging as a direct competitor to Nvidia’s H100 GPU.
Market Outlook and Nvidia’s Future Strategy
Nvidia’s stock has dropped 15% in 2025, following a massive surge in 2023. The company is set to report earnings on May 28, with analysts forecasting 65% revenue growth year-over-year, reaching $43.1 billion. However, growth is slowing compared to the 260% revenue increase Nvidia reported a year ago.
Huang remains optimistic about AI’s global expansion, stating, “The world is hungry, anxious to engage AI. Let us get the American AI out in front of everybody right now”.
