Nvidia Warns of Huge Loss if China Market Closed

Nvidia CEO Jensen Huang warned that losing access to China's rapidly growing AI market, projected to reach $50 billion within two to three years, would be a 'tremendous loss' for the company and the U.S. economy. Huang advocates for allowing American AI chip exports to China, arguing that further restrictions could hand the market to domestic Chinese competitors like Huawei. Due to ongoing U.S. government restrictions, including on Nvidia's H20 chips, the company took a $5.5 billion quarterly charge and has seen its share price drop 15% this year. Industry experts caution that continued limits on exports could undermine U.S. leadership in AI. Huang noted that adapting to AI will be necessary for workers to remain competitive. Despite these hurdles, analysts expect Nvidia's revenue to grow by 65% year-over-year, reflecting strong global demand.