Nvidia CEO Blasts U.S. Export Controls as a Failure

• Nvidia (NVDA) shares fell less than 1% to $133.40 in premarket trading as CEO Jensen Huang criticized U.S. export controls on advanced chip sales to China as a failure, accelerating Beijing’s AI technology development.
• The restrictions, including a Trump administration control in April targeting a tailored Nvidia AI chip, led to a $5.5 billion charge, while China’s $50 billion AI market in 2025 highlights lost revenue and job opportunities for the U.S.
• Huang praised the Trump administration for rescinding a Biden-era AI diffusion rule, enabling Nvidia to secure major chip deals in the Middle East and Southeast Asia, but ongoing export controls continue to challenge its market share in China.

Nvidia (NVDA) shares dipped less than 1% to $133.40 in premarket trading on Wednesday as Chief Executive Jensen Huang sharply criticized U.S. export controls on advanced chip sales to China, labeling them a failure that has spurred Beijing to accelerate its own artificial-intelligence (AI) technology development, according to a Wall Street Journal report. Speaking at an industry conference in Taipei, Huang highlighted that these restrictions, initially imposed by the Biden administration and largely maintained under President Trump, have cost Nvidia market share in China over the past four years, as local competitors, bolstered by government support, have gained ground. The curbs, driven by national-security concerns, notably impacted Nvidia’s leadership in AI chips, with a recent Trump administration control in April targeting a tailored Nvidia AI chip for China, prompting the company to record a $5.5 billion charge.

Huang emphasized China’s significance as the world’s second-largest computer market, projected to become a $50 billion AI market next year, arguing that revenue from this region could generate tax dollars and jobs for the U.S. He pointed out that the export controls have inadvertently fueled the determination and innovation of Chinese companies, which he described as highly talented and motivated. Despite his criticism, Huang commended the Trump administration for rescinding a Biden-era draft AI diffusion rule that would have imposed global caps on AI chip sales, including to third countries, to prevent China from accessing U.S. technology indirectly. The rule’s withdrawal, finalized this month, has enabled Nvidia and other American chip makers to secure deals for hundreds of thousands of advanced chips in countries like the United Arab Emirates, Saudi Arabia, and Qatar during a recent visit by Trump and Huang to the region.

The broader context underscores Nvidia’s pivotal role in the global AI ecosystem, where its chips are integral to advancing machine learning and data processing capabilities. Huang’s remarks reflect a strategic tension: while export controls aim to protect U.S. interests, they risk undermining American companies’ competitiveness in a rapidly growing market. He argued that maximizing AI technology diffusion, rather than restricting it, is essential for the U.S. to maintain its technological edge, especially as other nations develop their own AI capabilities. The decision to lift the diffusion rule has opened opportunities for Nvidia in emerging markets, but the ongoing controls on China continue to pose challenges. With a $50 billion AI market at stake, Nvidia’s ability to navigate these geopolitical and competitive dynamics will be critical to sustaining its dominance in the AI chip sector.

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