Charles Esther
Nvidia has posted impressive earnings for the first quarter of 2025, with revenue reaching $44.06 billion.
This figure surpassed Wall Street’s expectations of $43.32 billion, even as the company navigates severe export restrictions imposed on its chip sales to China.
CEO Jensen Huang acknowledged the blow these restrictions have dealt the company, particularly through the loss of the H20 chip market in China.
Still, the company’s core business remains strong, especially in its data center segment, which posted a 73% year-over-year increase with $39.1 billion in revenue.
Huang Warns of China Market Loss and US AI Risks
During Nvidia’s earnings call, Huang didn’t hold back on the impact of US export controls.
He stressed that China is one of the largest AI markets in the world and essential to long-term success in the field.
“Today, however, the $50 billion China market is effectively closed to US industry,” Huang said.
He warned that these export limits could push AI talent and opportunities toward rival nations.
“Export controls should strengthen US platforms, not drive half of the world’s AI talent to rivals,” he added.
The Trump Factor in Nvidia’s Global Strategy
Despite his frustrations with US export policy, Huang offered unexpected praise for former President Donald Trump.
He commended Trump’s efforts to re-shore advanced manufacturing, bolster job creation, and strengthen national security.
“The president has a plan,” Huang said.
“He has a vision, and I trust him.”
He specifically pointed to Trump’s $600 billion AI infrastructure deal with Saudi Arabia and the repeal of Biden’s “AI Diffusion Rule”.
Why the China Market Still Matters to Nvidia
When asked in an interview how Nvidia compensated for the loss of China’s business, Huang admitted that rising demand for the Blackwell chip helped.
However, he stressed that the Chinese market still holds immense strategic importance.
“You just can’t underestimate the importance of the China market,” he said.
“This is the second-largest AI market.
This is the home of the world’s largest population of AI researchers.
And we want all of the world’s AI researchers and all of the world’s developers to be building on American stacks.”
Nvidia Looks to Global Expansion Beyond China
With China becoming increasingly restricted, Huang revealed plans to expand Nvidia’s AI presence globally.
He emphasized the need for sovereign AI infrastructure in various countries and announced an upcoming European tour.
“Just about every country needs to build out AI infrastructure,” he said.
He also mentioned plans to meet with several heads of state to discuss future collaborations.
According to Gadjo Sevilla, senior AI analyst at EMARKETER, Huang’s move to diversify Nvidia’s global reach is smart, though time-consuming.
“That’s diversification,” Sevilla said.
“The only thing you need to consider is that that’s going to take time.
It’s not going to happen overnight.”
