Why NVIDIA is barring China from its revenue, profit forecasts
What's the story
NVIDIA, the leading American semiconductor company, has excluded China from its revenue and profit forecasts. The decision comes as a response to the ongoing chip export restrictions imposed by the US government. The company's CEO Jensen Huang told CNN that he does not expect these controls to be lifted anytime soon.
Belief
Don't expect Trump to reverse course: Huang
Huang said he doesn't expect the Donald Trump administration to reverse its chip export controls. He added that it would be a nice "bonus" if they did. The restrictions were imposed in April, requiring licenses for NVIDIA's H20 chips. The H20 was the most advanced AI chip the firm could sell to China.
Financial implications
Restrictions impact NVIDIA's financial outlook
The chip export restrictions have had a significant impact on NVIDIA's financial outlook. In its first-quarter results, the firm estimated an $8 billion hit to its revenue in the second quarter due to these limitations. The move underscores how global trade policies can directly affect tech companies' bottom lines and future projections.