Nvidia’s tumble rolls on as CEO Jensen Huang continues to talk about the one thing going wrong for the chip designer
Nvidia is down again in premarket trading as CEO Jensen Huang continues to talk about perhaps the one thing that isn’t going well for the world’s largest publicly traded company: China.
The chip designer has dropped more than 9% in the three days ended Thursday. That’s its biggest such tumble since April 7, the three sessions that followed President Donald Trump’s Rose Garden tariff announcements on April 2.
“Currently, we are not planning to ship anything to China,” Huang said on Friday while in Taiwan, per Reuters.
As it relates to Blackwell chips, this is the equivalent of me saying that I have no plans to ship raw elephant ivory tusks back home to Canada. For starters, I don’t have any, and secondly, it wouldn’t be legal.
And on the H20 side, China simply does not want the nerfed chips; or more precisely, policymakers are not allowing their tech champions to act upon any potential desire to get their hands on those GPUs. As Huang noted, the ball is in China’s court here.
“It’s up to China when they would like Nvidia products to go back to serve the Chinese market. I look forward to them changing their policy,” he said, per Reuters.
It’s not clear that analysts were ever expecting much of a pickup in Nvidia’s China business, even after export restrictions on the H20 were lifted.
Huang also further watered down his stance on the state of the AI race after the Financial Times reported that he said, “China is going to win the AI race,” earlier this week.
Not to get too deep into the sausage-making process of news here, but when an outlet as credible and prestigious as the FT is putting quotes around words and attributing them to the leader of the most valuable publicly traded company in the world, I personally feel fairly confident that those words were actually said.
“That’s not what I said,” Huang said, per Reuters. “What I said was that China has very good AI technology. They have many AI researchers.”
