Catenaa, Wednesday, June 18, 2025- Nvidia’s chief executive said the company has stopped factoring China into its revenue forecasts, citing mounting US export restrictions that cost the chipmaker an estimated $2.5 billion in first-quarter revenue.
Despite the losses, CEO Jensen Huang made a high-profile appearance in Beijing this week as Chinese automakers accelerate efforts to replace foreign semiconductor technology.
Huang said Nvidia is no longer counting on Chinese business, adding that any revenue from the country would be “a great bonus.”
The comment underscores Nvidia’s strategic pivot as the US government tightens restrictions on sales of advanced AI chips to China, including the China-specific H20 model.
Meanwhile, Beijing is pressing to localize its semiconductor supply chains. Automakers such as BYD, Geely, and Li Auto are pushing to eliminate foreign chip reliance by 2027, a major leap from the government’s prior target of 25% domestic chip usage in 2025.
The move threatens to cut into Nvidia’s dominant position in AI processors for autonomous driving and Qualcomm’s grip on smart cockpit chips.
The US restrictions are designed to deny China access to cutting-edge semiconductor technology that could support AI and military advancements.
Special export licenses are now required for American companies to ship high-performance chips into China.
Despite geopolitical headwinds, Nvidia’s stock remains in an uptrend, with bullish momentum across short-, medium-, and long-term timeframes, according to Benzinga Edge.
The visit and the company’s strategic shift is seen as a sign of deepening rift in global tech supply chains amid rising US-China tensions.
