Nvidia Warns U.S. Export Limits Hurt AI Leadership

Nvidia CEO Jensen Huang has warned that losing access to China's rapidly expanding AI market, projected to reach $50 billion in two to three years, would result in significant losses not only for Nvidia but also for the broader U.S. economy, including lost revenue, jobs, and tax income. U.S. export restrictions on high-performance AI chips, such as Nvidia's H20, have already caused a $5.5 billion write-down and contributed to a 15% decline in Nvidia's stock price this year. Huang questions the national security effectiveness of these controls, suggesting they could instead benefit Chinese competitors like Huawei. He urges that American companies be allowed to compete freely in the global AI market, highlighting the transformative promise of AI. Nvidia's performance is also impacting related sectors, such as crypto and blockchain, as investors closely watch the company's pivotal role in AI infrastructure. Despite these challenges, analysts remain optimistic about long-term AI sector growth but warn that restrictive trade policies could undermine U.S. competitiveness.