Nvidia CEO Warns U.S. Risking AI Opportunities in China

Jensen Huang, CEO of Nvidia, said that China’s artificial intelligence industry could see a $50 billion market size in just a few years. He cautioned that missing out on this growth would be a significant blow to U.S. tech companies.

During an interview at the ServiceNow Knowledge 2025 conference in Las Vegas, Huang emphasized the economic benefits of engaging with China. He pointed out that expanding Nvidia’s footprint in China would boost U.S. revenues, taxes, and create a large number of American jobs.

Huang and ServiceNow CEO Bill McDermott discussed the need for flexibility in the face of changing policies. Huang made it clear that Nvidia would support any U.S. government actions that align with national interests.

Nvidia is the leader in GPU production, a crucial component driving the AI boom. With a market value near $3 trillion, Nvidia has experienced exceptional growth. However, recent U.S. restrictions on the export of Nvidia’s H20 chips to China without a license could hinder future expansion.

These H20 chips, closely related to Nvidia’s Hopper architecture, were specifically designed to meet earlier export restrictions. As a result, Nvidia projects a $5.5 billion hit to its quarterly earnings due to these limitations, signaling the increasing strain caused by geopolitical tensions.

Huang, who has defended China’s AI capabilities in the past, reiterated that China is not falling behind in AI. He also praised Huawei as a major force in the global tech market during a Washington conference.

Despite a huge surge in 2023, Nvidia’s stock has fallen about 15% this year. Analysts expect the company to report a 65% revenue increase to $43.1 billion on May 28, though the growth rate has slowed from the previous year’s exceptional 260% rise.