Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang sharply criticized U.S. export restrictions on AI chips at Computex, arguing they “gave local companies the spirit, the energy, and the government support to accelerate their development.”
“Export Control Was a Failure,” Huang Declares
Speaking in Taipei, Huang noted that efforts to bar advanced chips like the H100 and H20 from China not only didn’t halt Beijing’s progress but spurred domestic innovation. As a result, Chinese firms leaned heavily on homegrown alternatives—from Huawei’s Kirin series to new foundry capacity at SMIC.
Market Share Erosion: From 95% to 50%
Under mounting export curbs since early in President Biden’s term, Nvidia’s share of China’s AI accelerator market plunged from 95% to 50%. That slide underscores how quickly local players can fill any void—but also hints at margin pressures for Nvidia in its largest growth market.
To see how Nvidia’s valuation stacks up against semiconductor peers now competing in China, investors can compare forward multiples using the Industry P/E Ratio API, which highlights shifts in sector-level pricing.
New Trump-Era Guidance Tightens the Screws
Last week, the U.S. Department of Commerce issued fresh rules barring even lower-spec H20 chips in China, forcing Nvidia to design a compliant successor. Meanwhile, Washington and Beijing spar over these controls, with China accusing the U.S. of “bullying” and threatening a fragile trade truce.
Investment Takeaway and Credit Profile
With export-restricted revenues lost and R&D spending rising to maintain tech leadership, Nvidia’s credit metrics warrant close monitoring. For an up-to-date view of its financial resilience, analysts can tap the Company Rating API to track how debt ratings evolve amid these geopolitical headwinds.
