Nvidia CEO Addresses Impact of US Export Controls on China Revenue
Nvidia CEO Jensen Huang recently discussed the significant impact of US export controls on the company’s revenue from China. The restrictions, imposed in 2022 on high-end chips, have led to a substantial decrease in Nvidia’s China-based earnings.
According to Huang, Nvidia’s revenue percentage from China was approximately double before the implementation of export controls. The company’s financial reports confirm this trend, showing a decline in China-sourced revenue from 21% to 13% between the fiscal years ending January 2023 and January 2025.
The US government further tightened export restrictions in 2023, compounding the challenges faced by Nvidia in the Chinese market. Despite these obstacles, Huang noted that competition from Chinese companies like Huawei remains strong.
Expressing uncertainty about the long-term effectiveness of export controls on innovation, Huang suggested that software development would likely continue to progress despite hardware restrictions. This perspective highlights the complex interplay between government regulations and technological advancement in the semiconductor industry.
The export controls have not only affected Nvidia’s revenue streams but also caused market volatility. The company experienced a brief stock shock following the release of DeepSeek’s R1 model, with its market capitalization dropping by nearly $600 billion. However, Nvidia has since recovered, currently boasting a market valuation of $3.22 trillion.
Despite these challenges, Nvidia’s overall financial performance remains robust. The company recently reported strong quarterly results, with total revenue growing to $39.3 billion, representing a 78% year-over-year increase from $22.1 billion.
As the situation continues to evolve, industry observers are closely monitoring the long-term implications of export controls on Nvidia’s global market position and the broader semiconductor landscape.
