Nvidia will persist in catering to the Chinese market, asserts Jensen Huang, despite the imposed tariffs.
Tariffs Take a Toll: Nvidia and Trump's Impact
In the wake of President Donald Trump's tariffs, the tech sector took a significant hit, with Nvidia among the hardest-hit companies. Market value losses amounted to billions in just a few days.
Recently, Nvidia submitted a filing to the U.S. Securities and Exchange Commission revealing that the U.S. government's licensing requirement for exporting H20 chips to China would cost the company approximately $4.5 billion – a reduction from the initial $5.5 billion estimate[1][3].
The H20 GPU, designed primarily for running AI models, is a specialized chip that complies with the U.S. government's regulations for selling the chips in China. However, it's not Nvidia's most advanced AI chip, the A100[1].
Despite the escalating trade war between the U.S. and China, Nvidia CEO Jensen Huang expressed the company's commitment to working with China[2]. During a visit to the country, Huang stated, "The increased restrictions have impacted our company significantly...We will continue to make significant efforts to optimize our products to comply with regulations and continue serving the Chinese market."
Struggling but Surviving
Nvidia has faced substantial market value losses since the implementation of Trump's tariffs, with a high of over $270 billion[3]. While this figure is significantly higher than Nvidia's loss, other tech giants such as Apple have faced even steeper declines at around $700 billion[3].
In a bid to resist Trump's tariffs, like Apple, Nvidia has taken steps to manufacture products within the U.S[2]. Just days before revealing the $4.5 billion hit, the company announced it would invest $500 billion into U.S. manufacturing[3].
Nvidia has secured over a million square feet of manufacturing space in Phoenix, which will be used by Taiwan Semiconductor Manufacturing Company (TSMC) to develop the company's new Blackwell chips. These chips power the company's RTX 50-series GPUs[3].
In addition to the chip production in Phoenix, Nvidia is building two supercomputer plants in Texas[3]. According to Huang, "The engines of the world's AI infrastructure are being built in the United States for the first time..."[3].
The Road Ahead
Despite setbacks due to export restrictions and market value losses, Nvidia's financial performance remains resilient. Revenue surged 69% in the first quarter of fiscal year 2026 compared to the previous year[3]. Despite the challenges, Nvidia remains committed to meeting growing demand for AI chips and supercomputers and maintaining a strong market presence in China.
- The tech sector's market value losses under President Donald Trump's tariffs reached billions for companies like Nvidia.
- Nvidia's H20 GPU, designed for running AI models and compliant with U.S. regulations, will cost the company approximately $4.5 billion due to export restrictions.
- The A100, not the H20, is Nvidia's most advanced AI chip but is not affected by the U.S. government's licensing requirement.
- Nvidia CEO Jensen Huang voiced the company's commitment to working with China amidst the escalating trade war and stated they will continue to optimize products to comply with regulations.
- Market value losses for Nvidia, though significant, have been higher for other tech giants like Apple, which faced around $700 billion in losses.
- Nvidia has made efforts to resist tariffs by manufacturing products within the U.S, including a $500 billion investment and the construction of two supercomputer plants in Texas.
- The company has secured over a million square feet of manufacturing space in Phoenix for TSMC to develop the Blackwell chips, powering the RTX 50-series GPUs.
- In the realm of technology and artificial intelligence, the engines of world AI infrastructure are reportedly being built in the United States as a result of Nvidia's supercomputer plants being constructed in Texas.
- Despite the challenges, Nvidia's financial performance remains strong, with revenue surging 69% in the first quarter of fiscal year 2026 compared to the previous year, demonstrating the resilience of the company amidst policy-and-legislation changes and political turbulence in the general news landscape.
