"Nvidia’s $50 Billion Vision: Why China Matters to U.S. Tech"

Nvidia CEO Jensen Huang predicts that China’s artificial intelligence sector could grow to a staggering $50 billion within the next two to three years. Speaking on Tuesday, Huang emphasized that losing access to this market would be a significant setback.

According to Huang, the ability to conduct business in China would bring substantial benefits to the United States, including increased tax revenues and job creation. “Selling to China would help bring back revenue and create many jobs here,” he stated.

Huang spoke alongside ServiceNow CEO Bill McDermott during an interview at the Knowledge 2025 conference in Las Vegas. The Nvidia chief stressed that the company would adapt to whatever decisions are made by the U.S. government, saying, “We just have to stay agile.”

Nvidia is at the forefront of the AI revolution thanks to its powerful GPUs, which have propelled the company's market value close to $3 trillion. However, the U.S. recently imposed stricter export rules, blocking shipments of Nvidia’s H20 chips to China unless a license is granted.

These H20 chips were developed specifically to meet previous restrictions and are related to the widely used Hopper architecture. As a result of the latest sanctions, Nvidia expects a $5.5 billion hit in its quarterly earnings, a major signal that geopolitical tensions could impact its growth.

Speaking at another tech event in April, Huang defended China’s AI progress, saying the country is not falling behind. He even described Huawei as a highly formidable player in the global tech landscape.

Despite a massive surge in 2023, Nvidia shares have dipped by about 15% in 2024. With earnings due on May 28, analysts forecast a 65% year-over-year revenue increase to $43.1 billion, although growth has cooled from the explosive 260% rise seen last year.