Nvidia reported an impressive 69% sales growth in its latest quarter, but also issued a stark warning about growing risks from escalating U.S.-China tech tensions. The AI chipmaker flagged U.S. restrictions on Chinese open-source AI models like DeepSeek and Qwen, and curbs on connected vehicle tech from China, as potential threats to its business.
While CEO Jensen Huang praised President Donald Trump’s decision to rescind Biden-era export controls, Nvidia’s filings revealed concerns over a pending replacement rule that could impose new restrictions. Huang criticized new Trump administration curbs from April that halted sales of Nvidia’s China-targeted H20 chip, which had driven $4.6 billion in revenue.
The export limits already cost Nvidia $2.5 billion last quarter and are expected to create an $8 billion shortfall in the current quarter. Despite this, Nvidia projects Q2 sales of $45 billion, suggesting about 50% year-over-year growth.
Huang emphasized that allowing Chinese AI models to run on Nvidia chips benefits U.S. firms by offering insight into global trends and reinforcing U.S. infrastructure as the go-to platform for AI development. He argued that export controls should bolster, not weaken, America’s AI leadership.
Nvidia shares surged 5.6% following news of a U.S. trade court blocking most of Trump’s proposed tariffs. The company is poised to add $150 billion to its market value, currently around $3.289 trillion.
Executives also highlighted multi-billion-dollar opportunities in Saudi Arabia, the UAE, and Taiwan, downplaying the long-term damage from China tensions. Huang further praised Trump’s international deal-making and a domestic industrial vision focused on robotics-powered factories, aligning Nvidia with U.S. manufacturing ambitions.
Swifteradio.com
