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Thursday, June 12, 2025

Nvidia to stop including China in forecasts amid US chip export controls, CNN reports

 Nvidia will exclude the Chinese market from its revenue and profit forecasts following the imposition of tough U.S. restrictions on chip sales to China, CEO Jensen Huang told CNN on Thursday.

When asked whether the U.S. will lift export controls after trade talks with China in London this week, Huang said that he was not counting on it.

"But, if it happens, then it will be a great bonus. I've told all of our investors and shareholders that, going forward, our forecasts will not include the China market," Huang said.

Nvidia did not immediately respond to a Reuters request for comment.

U.S. President Donald Trump said on Wednesday he was very happy with a trade deal that restored a fragile truce in the U.S.-China trade war, a day after negotiators from Washington and Beijing agreed on a framework covering tariff rates.

Nvidia for the first time in May said restrictions on the use of open-source Chinese AI models, such as DeepSeek and Qwen, could hurt its business, as could U.S. rules barring connected-vehicle technology from China, where Nvidia's long-struggling car chip business has finally flourished.

The export limits cost Nvidia $2.5 billion in sales during its fiscal first quarter, and it expects another $8 billion sales hit in the second quarter.

It reported $4.6 billion in revenue from H20 sales in China as customers stockpiled the chips before the curbs set in, with the China business accounting for 12.5% of overall revenue.

https://finance.yahoo.com/news/nvidia-stop-including-china-forecasts-183120979.html

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