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Nvidia CEO Jensen Huang warned Tuesday that exclusion from China's artificial intelligence market would represent a "tremendous loss" for the tech giant. Speaking alongside ServiceNow CEO Bill McDermott at the Knowledge 2025 conference in Las Vegas, Huang projected China's AI market will reach approximately $50 billion within three years.
"Being able to sell into China would bring back revenue, taxes, and create lots of jobs here in the United States," Huang told CNBC's Jon Fortt during the interview. This statement comes amid escalating tensions between the U.S. and China regarding technology transfers.
Last month, the Trump administration implemented new restrictions requiring licenses for shipping Nvidia's H20 chips to China. These chips were specifically designed to comply with previous export controls while remaining viable for the Chinese market. The restrictions forced Nvidia to announce a substantial $5.5 billion quarterly charge, signaling potential growth limitations.
Nvidia's stock has declined nearly 15% in 2025 after nearly tripling in value during 2023. Despite this setback, analysts predict the GPU manufacturer will report revenue growth of 65% year-over-year, reaching $43.1 billion when it announces earnings on May 28. This represents a significant deceleration from the 260% growth reported a year earlier.
Huang previously acknowledged China's AI capabilities during an April tech conference in Washington, D.C., stating that "China is not behind" and describing Huawei as "one of the most formidable technology companies in the world." These remarks highlight the competitive landscape Nvidia faces globally.
The GPU leader, with a market capitalization approaching $3 trillion, finds itself navigating complex geopolitical waters while attempting to maintain dominance in the AI hardware space. "We just have to stay agile," Huang emphasized, adding that Nvidia will support "whatever policies are of the government, whatever is in the best interest of our country."
The global demand for AI infrastructure remains robust, with Huang noting: "The world is right now hungry, anxious to engage AI." His strategic vision emphasizes American technology leadership, urging, "Let us get the American AI out in front of everybody right now."
For Nvidia, maintaining access to China's burgeoning AI market while adhering to U.S. export controls presents a delicate balancing act that could significantly impact its future growth trajectory and market position in the rapidly evolving artificial intelligence landscape.
