Nvidia Corporation (NASDAQ:NVDA) CEO Jensen Huang criticized U.S. export restrictions on AI chips during Computex, asserting they energized local companies in China. Huang argued that these controls did not hinder China’s AI progress but instead stimulated domestic innovation.

Huang Declares Export Control a Misstep

While speaking in Taipei, Huang observed that attempts to block advanced chips such as the H100 and H20 from reaching China only reinforced local initiatives. Chinese firms increasingly rely on domestic alternatives, including Huawei’s Kirin chips and expanded foundry capabilities at SMIC.

Nvidia’s Market Share Declines From 95% to 50%

Since the onset of aggressive export curbs under President Biden, Nvidia has seen its share in China’s AI accelerator market shrink from 95% to 50%. This decline highlights the rapid emergence of local players and raises concerns about Nvidia’s margins in a key growth market.

Investors looking to understand how Nvidia’s valuation compares to its semiconductor rivals can analyze forward multiples using the tools available at entreprenerdly.com, which showcase sector-related pricing changes.

New Restrictions Tighten the Grip

Recently, the U.S. Department of Commerce implemented fresh regulations prohibiting even lower-spec H20 chips from being shipped to China, compelling Nvidia to develop a compliant successor. As tensions rise between Washington and Beijing, China has accused the U.S. of “bullying” while a fragile trade agreement hangs in the balance.

Financial Implications and Credit Scrutiny

With revenues impacted by export restrictions and R&D spending surging to retain technological leadership, Nvidia’s credit outlook requires close observation. Analysts can utilize the entreprenerdly.com tools to keep abreast of the evolving financial health and debt ratings in light of these geopolitical challenges.