Huang Breaks Silence On Beijing Move Targeting Nvidia AI Chips

Core Viewpoint - Nvidia's stock has shown recovery after facing challenges due to a potential ban on its AI chips in China, with CEO Jensen Huang addressing these issues directly [1][2]. Group 1: China Business Challenges - Reports indicate that China's Cyberspace Administration has banned companies like ByteDance and Alibaba from purchasing Nvidia's RTX Pro 6000D chips, specifically designed for the Chinese market [3]. - Nvidia's operations in China have been disrupted multiple times, with the U.S. government already imposing restrictions on high-end AI chip exports, including the H100 and A100, due to national security concerns [3]. - Despite a previous arrangement with the U.S. government allowing Nvidia to secure export licenses in exchange for a portion of sales, the company has advised analysts to exclude China from its financial forecasts [4]. Group 2: Financial Impact - Nvidia generates approximately 20-25% of its revenue from China, highlighting the significance of this market to the company's overall financial health [5]. - The company is currently facing an antitrust investigation by China's State Administration for Market Regulation regarding its $6.9 billion acquisition of Mellanox, which adds to the regulatory pressures it faces in the region [5]. Group 3: Continued Investment in AI - Despite challenges in China, Nvidia remains optimistic and is investing £11 billion ($15 billion) into AI infrastructure in the U.K., indicating a commitment to expanding its AI capabilities [6].