Nvidia (NVDA) Chief Executive Jensen Huang sparked debate this week after reports suggested he said that China would “win the AI race.” The comment was made during the Financial Times’ Future of AI Summit in London. Soon after, Nvidia issued a statement from Huang that aimed to clarify his view. He said China is “nanoseconds behind America in AI” and that the U.S. must “race ahead” to stay in front.
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Huang’s first remark drew attention because it seemed to reverse his usual stance. However, the follow-up statement framed his intent as a call for faster progress in the U.S. He explained that America can maintain its lead by helping developers worldwide rely on Nvidia’s chips.
Meanwhile, NVDA shares dropped 1.75% on Wednesday, closing at $195.21.
Energy, Policy, and Market Shifts
In the same discussion, Huang compared China’s policies with those of Western nations. He said China supports its tech firms with cheaper energy and fewer limits. By contrast, he described Western rules as strict and costly. He argued that this could slow progress in AI development.
Nvidia has faced fresh hurdles in China this year. After meetings with U.S. President Donald Trump in July, the White House agreed to ease some chip curbs. Under that plan, Nvidia and Advanced Micro Devices (AMD) would pay the U.S. government 15% of their China revenue from sales of approved chips. Soon after, Beijing began a national security review of Nvidia’s products. That move stopped the company from selling to Chinese buyers, cutting its market share in China to zero.
Trade Talks and Industry Outlook
During Trump’s recent meeting with Chinese President Xi Jinping in South Korea, trade talks brought no change to the chip limits. Reports said Huang had hoped for approval to sell new AI chips in China, but U.S. officials resisted. Some analysts believe China may be using Nvidia’s market access to gain ground in trade discussions or to push local chip makers forward.
As Nvidia waits for clarity, Huang has turned his attention to other areas. He continues to focus on global developer networks and supports changes to Western energy and policy rules. In his view, lower costs and more open markets are key to AI growth. Despite recent tensions, Nvidia remains one of the main suppliers of advanced chips for the world’s leading AI systems.
Is Nvidia Stock a Buy?
Nvidia continues to hold the Street’s endorsement with a Strong Buy consensus rating. The average NVDA price target is $237.35, implying a 21.59% upside from the current price.
