Nvidia CEO Warns US Tech Risks Losing $50B Opportunity As China Chip Curbs Supercharge Huawei, Local Rivals

Nvidia Corp. (NVDA) CEO Jensen Huang once again warned about the pitfalls of allowing China to dominate artificial intelligence (AI) technology..

While talking to reporters on the sidelines of the Computex expo in Taipei, Taiwan, Huang took potshots at the U.S. government for imposing export curbs on AI chip sales to China, Bloomberg reported. 

He added that this has allowed the Asian country to improve its technological expertise in the area.

The executive also called upon the Trump administration to lower the export curbs before American companies lose market share to homegrown rivals such as Huawei.

The previous Biden administration initially implemented these restrictions in 2022 to prevent China from accessing some of the world’s most powerful chips due to security concerns. 

President Donald Trump has followed his predecessor on this count and announced additional restrictions in early April.

Nvidia disclosed a $5.5 billion hit to the bottom line from the curbs.

Huang’s fears aren’t ill-founded. In late April, a Wall Street Journal report said Huawei had begun manufacturing a high-performance computing AI chip that would compete with Nvidia’s high-end offerings.

Incidentally, in 2022, the U.S. banned Huawei and other Chinese companies from selling telecom equipment to U.S. companies, citing security concerns.

Huang reportedly said China alone presents a $50 billion opportunity for U.S. tech companies by 2026. He added that if U.S. tech companies are prevented from doing business with China, these dollars will likely be siphoned elsewhere.

The Nvidia CEO also said earlier this week that the company’s next chip for China after the H20 chip — built as a workaround for the U.S. China chip curbs — will not be based on the Hopper architecture.

Huang called the export curbs a failure: “The US should maximize the speed of AI diffusion. Because if we don’t, the competition will come.”

“China has 50% of the world’s AI developers, and it’s important that when they develop on an architecture, they develop on Nvidia, or at least American technology.”

Nvidia stock was down about a percent in Wednesday’s early premarket session. The stock is nearly flat for the year, although it is trading off its all-time high of $153.13.

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