Nvidia CEO believes that US tech companies will withstand tariffs
In an interview with USA Today, Jensen Huang, CEO of Nvidia, the world’s most valuable company, discussed President Trump’s tariffs and manufacturing.
nvidia (NASDAQ: NVDA) It is the cornerstone of the artificial intelligence (AI) boom. The company has increased 1,070% by 1,070% since January 2023 as the company reports incredible financial results due to strong demand for graphics processing units (GPUs) and other data center infrastructure.
Nevertheless, export restrictions imposed by the US government spend billions of dollars in sales on companies. Luckily, Nvidia shareholders recently got great news from the Trump administration. Applications to resume sales of H20 GPUs in China will be approved by the Ministry of Commerce.
This is what investors should know.
How semiconductor export restrictions have affected Nvidia under Biden and Trump administrations
China has historically been Nvidia’s main market. This accounted for 26% of revenue for the fiscal year ended January 2022. However, export restrictions dragged 17% in fiscal 2023 and 13% in fiscal 2025.
The timeline below provides a brief explanation of how US policy has evolved over time.
- September 2022: The Biden administration has ordered NVIDIA to export A100 GPUs and more powerful H100 GPUs to China. The company estimates it will lose roughly $400 million in quarterly revenue. Nvidia responded by creating a compliant version of the hopper GPU called the H800.
- October 2023: The Biden administration has told Nvidia to halt exports of H800 GPUs to China. The company was forced to cancel billion-dollar orders. Nvidia has responded again by creating a version that conforms to the export of a hopper GPU called the H20.
- April 2025: The Trump administration has told Nvidia to halt exports of H20 GPUs to China. The company estimated it would cut its revenue by $8 billion in the second quarter after being billed $4.5 billion for unreused inventory.
Nvidia CFO Colette Kress said in a first quarter revenue call that “lossing access to the Chinese AI accelerator market will grow to nearly $50 billion, but it will have a significant negative impact on business going forward and benefit foreign competitors around the world.”
CEO Jensen Huang calls export restrictions a failure. He said in May:
The question is not whether China has AI or not. That’s already true. The question is whether one of the world’s largest AI markets will run on American platforms. Protecting Chinese chipmakers from US competition will only strengthen them overseas and weaken America’s position.
Trump administration grants NVIDIA license to sell H20 GPUs in China
On Monday, July 14th, Nvidia submitted an application to resume sales of H20 GPUs in China, saying it has received a guarantee from the US government that it will be licensed. The news comes days after CEO Jensen Huang met with President Trump, and the company plans to start offering compliant AI accelerator chips soon.
Additionally, the Trump administration revoked Biden-era AI spread rules earlier this year. This limited Nvidia’s ability to sell the most advanced AI chips in dozens of countries historically US ally, including Saudi Arabia, the United Arab Emirates (UAE), Singapore and Israel.
The Commerce Department said the AI spread rules, released on the last day of the Biden administration, “threatened American innovation and plagued businesses with new regulatory requirements.” Furthermore, “downgrading US diplomatic relations to two-stage status will undermine diplomatic relations with dozens of countries.”
Nvidia has already taken advantage of the withdrawal of AI spread rules as more countries are leaning towards sovereign AI. Earlier this year, the company announced a partnership to bring chips and networking equipment to Saudi Arabia and the UAE.
Wall Street analysts could increase NVIDIA revenue estimates
Ultimately, the Trump administration’s decision to allow H20 GPUs to be sold to China, coupled with the withdrawal of AI proliferation rules, means that Nvidia has a larger addressable market today. Second, Wall Street analysts are likely to raise revenue estimates, with upward revisions tending to correlate with stock price valuations.
According to Wall Street consensus, Nvidia’s revenues will increase by 41% each year throughout the fiscal year ending in January 2027. This will withstand a 54x current revenue valuation.
However, the upward revision of earnings estimates makes the stock even more attractive. Investors interested in adding stocks to their portfolios should consider buying NVIDIA stocks now.
Trevor Jennewine has a position as Nvidia. Motley Fool has a job at Nvidia and recommends. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
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