Nvidia to exclude China from forecasts
Source: cnn.com
Chipmaker Nvidia will not include the Chinese market in its revenue and profit forecasts due to US restrictions on chip sales to China, the company's CEO said.
Nvidia CEO Jensen Huang, when asked if the US will lift export controls, said that forecasts will not include the China market going forward. He added, “I’m not counting on it but, if it happens, then it will be a great bonus.”
Washington has increased efforts to limit China’s access to American chip technologies, with the goal of preventing China from using US innovations to improve its military and AI capabilities.
Huang said that the US chip export controls' “goals are not being achieved” and that they are “apparently not working.” He believes that “with all export controls, the goals have to be well-articulated and tested over time.”
Nvidia missed out on an additional $2.5 billion in revenue because export restrictions stopped it from shipping its H20 AI chips to China. The company had developed the chip to accommodate US export controls but learned in April that it would need a special license to ship it.
Nvidia experienced a smaller hit than anticipated from excess inventory, taking a $4.5 billion charge, compared to the expected $5.5 billion.
Nvidia is working to grow its presence as an AI player. Huang announced the company will build a cloud computing platform for industrial AI applications in Europe. Its Blackwell architecture will support new AI infrastructure projects in Europe.