Nvidia Warns of Growing China Risks While CEO Jensen Huang Praises Trump’s Vision

In a recent earnings report, Nvidia, the leading artificial intelligence chipmaker, disclosed escalating risks to its business due to ongoing U.S.-China tech tensions. Despite reporting a staggering 69% sales growth in the latest quarter, the company highlighted potential revenue losses stemming from export restrictions on its advanced chips to China. These curbs, imposed by the U.S. government, have already cost Nvidia $2.5 billion in Q1 revenue and are projected to result in an additional $8 billion loss in the second quarter.

During the earnings call, Nvidia executives emphasized that the April export controls on their H20 GPUs could lead to a staggering $10.5 billion revenue shortfall in the first half of fiscal year 2026. The restrictions have significantly hampered Nvidia’s ability to tap into the lucrative Chinese market, where its market share has reportedly dropped from 95% to 50% in recent years due to these policies.

Amidst these challenges, Nvidia CEO Jensen Huang struck a surprisingly optimistic tone regarding U.S. leadership. Huang publicly praised President Trump, expressing trust in his trade vision and strategic plans. He suggested that Trump’s policies could potentially ease some restrictions or open new avenues for collaboration, which might benefit American tech giants like Nvidia in the long run.

Huang also hinted at Nvidia’s adaptive strategies, including the development of a cheaper Blackwell AI chip specifically for the Chinese market, priced between $6,500 and $8,000. This move aims to circumvent some of the export barriers while maintaining a foothold in China, despite the geopolitical headwinds.

The CEO further underscored the importance of the Chinese AI market, calling the inability to fully address it a 'tremendous loss' for American companies. He advocated for balanced policies that could foster innovation and revenue growth, ultimately benefiting the U.S. economy through taxes and job creation.

As Nvidia navigates these turbulent waters, investors and industry watchers are keenly observing how the interplay of technology and politics will shape the company’s future. With blockbuster growth juxtaposed against significant risks, Nvidia remains a pivotal player in the global AI landscape, balancing innovation with geopolitical realities.