Export restrictions frustrate Nvidia: 'Whoever captures the Chinese market ultimately wins global dominance'

Nvidia's quarterly revenue could have been $8 billion higher if Donald Trump had not imposed export restrictions on China, says Nvidia CEO Jensen Huang. The chipmaker had to strip down the technology in its new A20 AI chips and risks ending up with an inferior product, which Huang does not want to bring to the Chinese market, says Jean-Paul van Oudheusden of eToro in News Clearly Beursweek. 'He is ahead and faster than the Chinese, but he has to leave that $50 billion market untouched. And he is very angry about that.'

Nvidia delivers the computing power demanded by AI models like no other and will therefore continue to have customers for the time being. The operational risk due to the acceleration seems to barely affect the chipmaker. But if relations with the US worsen, Nvidia could lose not only Chinese sales but also part of its supply chain, says Van Oudheusden. 'It is essential that this continues to run smoothly, also in China. So I do see that as a risk.'