A Tough Balancing Act for Nvidia’s CEO
On Nvidia’s earnings call following its first-quarter results, Huang didn’t hold back when addressing the company’s latest financial blow, a $4.5 billion inventory hit tied to new US export controls, according to Fortune. The policy, introduced by the Trump administration, blocks Nvidia from selling its advanced H20 AI chips to China, as per the report.While Huang did not mention US president Donald Trump by name when voicing concern, but just referred to US policy as he said, “The U.S. has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable, and now it’s clearly wrong,” quoted Fortune. He also highlighted that, “Export controls should strengthen U.S. platforms, not drive half of the world’s AI talent to rivals,” as quoted in the report.
According to the AI chipmaker, the new rules will cost Nvidia $10.5 billion in revenue during the first half of the year, as per Fortune.
Jensen Huang’s Praise for Donald Trump Just Minutes Later
However, when the CEO did mention Trump, it was to praise him, as he said, “President Trump has outlined a bold vision to reshore advanced manufacturing, create jobs, and strengthen national security,” and also added that he was “honoured” to join the US president in the US-United Arab Emirates AI investment projects that include expanding to Nvidia chips, reported Fortune.
Huang also said that Trump “wants the United States to win and recognizes that we have to get the American stack out to the world, and get the world to build on the American stack instead of alternatives,” quoted Fortune.
FAQs
Why did Nvidia take a $4.5 billion hit?
The loss comes from unsold inventory due to new US export controls that block Nvidia from selling AI chips to China.
Did Jensen Huang criticize Donald Trump directly?
No, he avoided naming Trump while criticizing the policy, referring only to “US policy.”