Nvidia Navigates AI Chip Sales Amidst US-China Trade Conflict

Nvidia has announced remarkable sales growth of 69% this quarter; however, the AI chip manufacturer also warned of potential risks stemming from the ongoing technology dispute between the U.S. and China. New restrictions on Chinese open-source AI models like DeepSeek and Qwen could potentially impact Nvidia's operations, as could American regulations prohibiting Chinese connected vehicle technology, which has previously bolstered Nvidia's revenue.

CEO Jensen Huang commended the withdrawal of an export rule proposed by President Biden, emphasizing the lack of a subsequent regulation to replace it. Conversely, Huang criticized restrictions imposed by the Trump administration that prevented sales of Nvidia's H20 chip in China, leading to a financial loss of $2.5 billion last fiscal quarter, with further losses expected.

Nvidia anticipates second-quarter sales of approximately $45 billion, reflecting a 50% growth rate. Despite the constraints from the US-China dynamics, Huang underscored the importance of the U.S. retaining leadership in the AI industry by supporting global collaboration, while acknowledging potential new ventures in the Middle East as beneficial for America's economy and job market.

(With inputs from agencies.)