In an interview, Nvidia CEO Jensen Huang revealed the company's decision to exclude China from its revenue forecasts due to new export restrictions on chips. This decision follows losses incurred due to trade barriers.
Impact of Export Restrictions on Nvidia Sales
According to Huang, export restrictions have cost Nvidia $2.5 billion in sales in Q1 2025, with expected losses of $8 billion in Q2. He stated that the company is not counting on the U.S. easing these restrictions, which would be a bonus.
Criticism of Tariffs and Their Consequences
Huang also criticized the Trump administration’s tariffs on chip exports, stating that they have not achieved their objectives. He emphasized the need for clearly articulated goals for export controls to achieve the desired outcomes.
Nvidia's Future in the Chinese Market
Analysts express concerns about Nvidia's sales in China going forward. For instance, Gil Luria from D.A. Davidson noted that without reopening sales to China, there could be negative consequences for earnings expectations in 2026. Meanwhile, Nvidia continues to assess its limited options in the Chinese market.
In summary, Nvidia's decision to exclude China from its revenue forecasts highlights the impact of a complex political landscape on tech companies. This decision is expected to significantly influence the company's future financial results and its strategy on the international stage.
