From Yahoo Finance: 2025-05-29 17:03:00

Nvidia CEO Jensen Huang warns about China’s AI market, impacted by US export restrictions. Huang spoke bluntly about bans on selling H20 chips to China, prompting Wedbush to issue a research note titled “Mr. Huang Goes to Washington.” China’s AI industry could reach $1.4 trillion by 2030, per a Morgan Stanley report.

Export restrictions have closed the $50 billion China market to US industry, impacting Nvidia’s business. The company missed out on $2.5 billion in sales due to restrictions on H20 chips. Huang emphasized the importance of China’s AI market and the role of American platforms.

China aims for AI independence, prioritizing efficient and affordable technologies like DeepSeek. The US-based policy that China can’t make AI chips has been proven wrong. Nvidia faces challenges in China but strives to navigate US-China relations and maintain global competitiveness.

Wedbush maintains an optimistic outlook on Nvidia despite challenges in China. DA Davidson raises price target on Nvidia but notes concerns about the lack of H20 sales in China affecting Q1 and Q2 results. Analysts emphasize the importance of US-China relations for Nvidia’s future success.

Veteran trader praises Nvidia’s performance despite challenges in China, reiterating a stock price target of $165. Demand for AI technologies remains strong, with the Chinese market significantly impacting Nvidia’s overall performance. Cash flows are strong, and the balance sheet is robust, signaling resilience in the face of challenges.

Read more: Nvidia CEO turns heads with stern warning about China AI market