Nvidia strokes China from forecasts due to US export controls
Nvidia strokes China from forecasts due to US export controls
The chip manufacturer Nvidia will exclude the Chinese market from its sales and profit forecasts. The reason for this is the strict US restrictions for the sale of chips to China, as CEO Jensen Huang said on Thursday.
nvidia's adaptation to the market conditions
When asked whether the USA is the export controls according to the Commercial talks will be relaxed in London this week, Said Huang to CNN: "I don't expect it, but if it happens, that would be a big bonus. I have informed all of our investors and shareholders that our forecasts will no longer be taken into account in the future."
US restrictions and their effects
In recent years, Washington has reinforced the efforts to limit China's access to American chip technological innovations. The aim is to prevent Beijing US innovations to strengthen its military and AI skills.
The Comments by Huang underline the effects of US chip restrictions on NVIDIA, a company that was once known primarily for its graphics processors for video games, but benefited enormously from the increasing demand for AI chips and infrastructure. In the first quarter of 2025, the company exceeded Wall Street sales forecasts and recorded an increase of 69 % compared to the same period last year.
missed income from export restrictions
However, NVIDIA missed additional income of $ 2.5 billion, since export restrictions prohibited the company to deliver its H20 KI chips to China. This special chip model was specially developed to take the US export control into account, but Nvidia was announced in April that a special permit was required. The company suffered a smaller loss than expected due to excesses: $ 4.5 billion had to be written off, compared to the originally expected $ 5.5 billion.
opinions about the export controls
Kevin Hassett, director of the US National Economic Council, told CNBC on Monday that the Trump administration may be open to loosen the restrictions for some microchip exports that China sees as critical for his production sector. However, the USA will continue to maintain the controls for "very, very powerful Nvidia chips" that could drive AI systems.
On Thursday, Huang again criticized the US export controls. "The goals of the export controls are not achieved," he said to CNN. "Whatever the initially discussed goals, they obviously do not seem to work. So I think that the goals in all export controls have to be clearly formulated and tested over a longer period of time."
Nvidia's role in the technology competition
At a press conference in Taiwan,last month described the US restrictions on chip exports as "failure" and warned against the restrictions of American companies more harm than China. Nvidia's position as a decisive provider of AI chips has placed the company in the middle of the technologizing between the USA and China. This race at the beginning of this year with the rise of the Chinese tech startup deepseek Soft AI model caused a stir, tightened.
The Trump team has tried to position the USA as a leader in the AI area. Vice President JD Vance explained that an "excessive regulation of the AI sector" "a transformative industry could destroy itself at the moment it is established" while he spoke at the Artificial Intelligence Action Summit in Paris at the beginning of the year.
future developments and expansion
Dan Ives, global director of technology research at Wedbush Securities, noted that the export controls could be relaxed in order to prevent China from obtaining a competitive advantage in the ACI area. "With the AI revolution, which enters into a new growth phase, it is important for China's technology companies to gain access to Nvidia's chips, since the current H20 ban hands over a large part of Nvidia's business directly on a silver tray to Huawei," he wrote in a industry note of June 11th.
In the meantime, Nvidia continues its expansion and then strives to establish itself as an important player in the field of AI worldwide. Huang announced on Thursday that the company will build the first cloud computing platform for industrial AI applications in Europe. In addition, the Blackwell architecture will support new AI infrastructure projects in Europe.
Olesya Dmitracova and Clare Duffy contributed to this article.