Nvidia CEO Drops Bombshell: China Market Excluded From All Future Forecasts
Nvidia just redrew its roadmap—with China conspicuously missing from the navigation.
The GPU giant''s CEO dropped the mic during a recent earnings call, confirming what analysts suspected: China''s once-lucrative market is now officially off the books. No more hockey-stick projections, no more rosy revenue scenarios—just cold, hard silicon reality.
Wall Street''s reaction? A collective shrug. Because when you''re printing money with AI chips, who needs the world''s second-largest economy anyway? (Spoiler: your shareholders might.)
Meanwhile in Shanghai: local manufacturers are already reverse-engineering the news—and the chips—with characteristic efficiency.
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During the interview, Huang was also asked whether he expects the U.S. administration to ease export restrictions once trade negotiations with China conclude. To which he replied, “I’m not counting on it but, if it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market.”
Simultaneously, Huang announced that Nvidia is building the world’s first and largest cloud computing platform for industrial artificial intelligence (AI) applications in Europe, powered by its Blackwell architecture.
Nvidia Navigates U.S.-China Trade War
Over the years, the U.S. has tightened restrictions on the export of advanced AI chips to China, citing national security concerns. Nvidia, which counts China as its second largest market, has fallen victim to this race for AI supremacy. The company’s advanced AI chips, including those specially designed for China, now require a special license for export. In its Q1FY26 results, Nvidia took a $4.5 billion hit from export curbs on its China-designed H20 chips and missed out on an additional $2.5 billion in potential China sales.
Huang has openly criticized the government’s curbs, stating that they are not meeting the intended outcome. Instead of weakening China’s edge in AI, these restrictions are prompting domestic manufacturers to ramp up their technological capabilities. China’s Huawei is emerging as a formidable opponent to Nvidia by developing equally advanced chips using cluster computing method, which involve binding multiple chips together to boost efficiency and performance.
Daniel Ives Says Easing Export Controls Is Necessary
Wedbush’s top analyst, Daniel Ives, recently noted that easing U.S. chips export restrictions is necessary to stop China from gaining an edge in AI. He believes that ban on exports of Nvidia’s H20 chips, in particular, hands “a good portion of Nvidia’s business directly to Huawei on a silver platter.”
According to Ives, the AI revolution is entering its next phase of growth, and it is vital for Chinese tech players to have access to Nvidia’s chips, otherwise, a large portion of the demand could shift permanently to Huawei.
Is NVDA a Good Buy Right Now?
With 35 Buys, four Holds, and one Sell rating, NVDA stock has a Strong Buy consensus rating on TipRanks. Also, the average Nvidia price target of $172.36 implies 18.9% upside potential from current levels. Year-to-date, NVDA stock has gained nearly 8%.
