In an interview with news channel CNBC, CEO Jensen Huang warned that the U.S. would face “tremendous loss” if it missed out China’s artificial intelligence (AI) market, expecting the value to reach approximately $50 billion in two to three years.
Huang’ company, Nvidia, is the world’s leading graphics processing units producer, which is a major component for AI development and training. The success in his business has lifted the company’s market value to nearly $3 trillion.
Nvidia has been facing a tough time around the final year of Biden’s term when the administration restricted several exports of U.S. companies chips and CPU to China. Last month, the U.S. government under the Trump administration restricted them from exporting H20 to the world’s second largest economy, China, without a license. This restriction could force Nvidia to face a $5.5 billion quarterly charge.
The tension between the two nations significantly affected the company. Its share this year has declined by 15% after two years of soaring.
As the market is eyeing for the earnings report scheduled to be on May 28, the consensus from LSEG indicates a 65% in revenue growth to $43.1 billion. Last year, Nvidia’s revenue increased by 260% YoY.
Last month, Huang warned that China is “not behind” in the AI industry. He now urged for access to the China Market, as it could restore revenue, tax, and reduce job loss in the U.S.
