NVIDIA warns U.S. Banning AI chip exports to China could backfire

Jensen Huang, CEO of NVIDIA, has warned that U.S. restrictions on exporting AI chips to China could “backfire,” hurting the U.S. more than China itself — as nearly half of the world’s AI developers are Chinese.

 

“We must stay in the Chinese market because it’s the hub of innovation and developer talent,” Huang said. “Cutting NVIDIA off from China doesn’t just reduce sales — it disconnects us from the core of global AI progress.”

 

NVIDIA’s market share in China has already fallen from 95% to nearly zero, following tighter U.S. export controls on advanced chips like the A800 and H100. These measures aim to prevent military use of U.S. technology but have heavily disrupted commercial AI development.

 

Meanwhile, reports suggest that the Trump administration is considering a 15% profit-sharing tax on NVIDIA’s China sales — a move that could further strain the company’s operations and investor confidence.

 

📊 TrendPro Analysis:

The U.S.–China tech war signals a turning point in the global AI economy — a shift from hardware dominance toward data and developer ecosystems.

 

For TrendPro traders, this news points to short-term volatility in AI-related stocks, semiconductor sectors, and tech indices (like NASDAQ 100).

 

In the long run, rising geopolitical uncertainty may create new opportunities for emerging markets to enter the AI supply chain.