Jensen Huang, CEO of Nvidia, made remarkable statements during his appearance at the Milken Institute Conference against the U.S. export restrictions on artificial intelligence chips. Huang said that lifting these restrictions, particularly those targeting China, would benefit both the U.S. economy and domestic employment.
While Nvidia stock remains fundamentally strong, ongoing concerns regarding global trade tensions and tech wars pose potential risks to its business.
One major concern is that stricter enforcement of current U.S. export rules could impact Nvidia’s profitability. Moreover, other countries might respond with reciprocal tariffs on American goods. Huang emphasized that the global adoption of high-performance chips would solidify the United States’ technological leadership.
Another challenge stems from the recent tightening of U.S. regulations. Nvidia has once again had to adjust its strategy for high-performance graphics cards in the Chinese market. Despite significant development efforts, the company’s China-only GeForce RTX 5090D will no longer be sold there. Equipped with 21,760 CUDA cores and 32GB of GDDR7 memory, the card was built on the GB202 architecture but had its AI processing power deliberately limited to comply with U.S. regulations. This situation reflects the growing difficulty tech companies face in navigating U.S. regulations.
In other words, U.S. export restrictions on high-performance AI hardware now affect not only enterprise-grade but also consumer-grade hardware.
Despite these challenges, Nvidia remains far ahead of its Chinese competitors. The most advanced chip currently produced in China is based on 7-nanometer technology, while Nvidia’s key partner, TSMC, is developing chips at the 2-nanometer level.
Taiwan, home to TSMC, plays a strategic role in this technological edge. The Taiwanese government strictly prohibits investment from Chinese chip-design firms and bars domestic companies from collaborating with their Chinese counterparts. This has solidified Taiwan’s position as a close U.S. ally in the semiconductor race, enabling both nations to retain leadership in cutting-edge chip technology. Unless diplomatic or commercial relations shift significantly, U.S. dominance in this sector will likely continue for at least another decade.
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