Nvidia CEO Jensen Huang told CNBC on Tuesday that the China AI market will be worth about $50 billion and it would be a “tremendous loss” to be blocked.Nvidia CEO Jensen Huang told CNBC on Tuesday that the China AI market will be worth about $50 billion and it would be a “tremendous loss” to be blocked.
Huang said being able to sell into China would bring back revenue, taxes, and “create lots of jobs here in the United States.”
“We just have to stay agile,” Huang told CNBC’s Jon Fortt, in an interview alongside ServiceNow
Nvidia is the leading provider of graphics processing units (GPUs), which have powered the AI boom and lifted the company’s market cap to almost $3 trillion. Last month, the Trump administration restricted the shipment of Nvidia’s H20 chips to China without a license. That technology, which is related to the Hopper chips used in the rest of the world, was developed to comply with previous U.S. export restrictions.
Nvidia said it would take a $5.5 billion quarterly charge due to the restriction, the strongest sign so far that the company’s historic growth could be slowed because of U.S.-China trade tensions. Later in April, Huang said at a tech conference in Washington, D.C., that China is “not behind” in AI, and that Huawei is “one of the most formidable technology companies in the world.”
Shares of Nvidia are down about 15% so far this year after almost tripling in 2023. The company is set to report earnings on May 28. Analysts expect to see revenue growth of 65% from a year earlier to $43.1 billion, according to LSEG. While Nvidia is still expanding much faster than its megacap peers, growth is slowing, as the company reported a revenue increase of more than 260% a year ago.
“The world is right now hungry, anxious to engage AI,” Huang said on Tuesday. “Let us get the American AI out in front of everybody right now.”
