The United States has implemented stricter export bans on AI chips to China, severely impacting the semiconductor supply chain. NVIDIA CEO Jensen Huang has stated that despite the large Chinese market, the company cannot ship its China-exclusive H20 chips under the new regulations, and it will exclude revenue and profits from China in future financial forecasts. Huang remarked that due to the adjustments in US export control policies, NVIDIA's products shipped to China are limited, and he does not expect any easing of the ban from US-China negotiations in the short term. According to NVIDIA's financial reports, revenue from the H20 chip reached $4.6 billion in the first quarter of this year, with 12.5% coming from China. However, following the ban, NVIDIA anticipates a $4.5 billion loss in the first quarter of the 2026 fiscal year, with potential revenue shortfalls of up to $8 billion in the second quarter.

Huang is concerned that NVIDIA's exit from the Chinese market will be replaced by Huawei. D.A. Davidson analyst Luria has warned that if NVIDIA cannot resume shipments of AI chips to China, it will place significant pressure on overall operations in 2026. Huang emphasized that the US companies' AI technology is still a generation ahead of Huawei, but in the current circumstances that restrict American companies from participating in the Chinese market, 'If we vacate our position, who will fill it? Of course, it will be Huawei.' Meanwhile, Arm CEO Rene Haas has also come to Huang's defense, suggesting that the US government's strategy of blocking Chinese technology may backfire and accelerate the development of China's domestic chips, which could be detrimental to the US in the long term.