‘Let Us Win the Market,’ Says Nvidia CEO as He Slams AI Chip Export Rules

Nvidia’s (NVDA) CEO, Jensen Huang, sharply criticized U.S. export controls on Wednesday, calling the rules a clear ‘failure’ that limits China’s access to advanced AI chips. Speaking at the Computex event in Taipei, Huang urged the U.S. government to lower barriers on AI chip sales to avoid losing the fast-growing market to competitors like Huawei and other Chinese startups.

Huge Market Opportunity at Risk

Huang said China’s AI market will be worth about $50 billion by 2026, a huge chance that U.S. companies could lose if the export rules stay in place. He warned that if companies like Nvidia cannot sell in China, local buyers will turn to homegrown suppliers. Huang stressed, “If we don’t, the competition will come,” making clear that easing controls is key to staying ahead.

Huang noted that Nvidia’s grip on the Chinese market has weakened dramatically since the Biden administration imposed the export curbs. “Four years ago, Nvidia had 95% market share in China. Today, it is only 50%,” he said, adding that the remaining share is now covered by Chinese technology. He called the AI export policy “fundamentally flawed” and praised Trump for seeing the restrictions as the “wrong goal” and trying to ease them globally.

Export Controls Backfire, Help Chinese Tech Grow

Instead of slowing China’s tech rise, the export curbs have pushed the country to build its own AI chip supply chain. Huang warned, “Our competition in China is really intense,” and said Chinese companies “would love for us never to go back to China.” The rules have made local firms stronger rather than weaker.

Nvidia has already written off $5.5 billion of H20 AI chips made to follow the rules, and earlier this week Huang estimated the total lost revenue could reach $15 billion. Speaking yesterday, Huang explained the company can’t downgrade those chips any more to meet the rules, so it has no choice but to discard the inventory.

Urgent Call for the U.S. to Tweak the Export Policy

Huang repeated that the current ban on H20 chips “is not effective.” He pointed out that “power is quite cost-effective in China,” and there is plenty of land to build data centers, so local companies will fill the space Nvidia leaves behind. Huawei and startups will gain if U.S. companies stay blocked.

Huang strongly urged the U.S. government to recognize that the ban “is not effective” and to give American companies a chance to return and “win the market.” Despite these challenges, Nvidia is still working on new chips with adjusted parts to meet export rules and keep its lead in global AI tech.

Is Nvidia a Good Stock to Buy Right Now?

Nvidia will report its Q1 FY26 earnings on May 28. Wall Street is upbeat, with analysts expecting EPS of $0.88 on revenues of $43.18 billion.

According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, five Holds, and one Sell assigned in the last three months. The average NVDA price target of $164.51 implies 22.42% upside potential from current levels.

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