NVIDIA's CEO Jensen Huang says that the Trump tariffs won't have a meaningful impact in the "near term", claiming that they are working with partners to bring production to the US.
NVIDIA's CEO Does Believe That They'll Take a Hit In Revenue From US Tariffs, But It Would Be Fine In The Long Term
Well, the imposition of new tariffs did put the markets in a bit of a panic state, given that it was assumed that the global supply chain would see disruptions. Out of all the companies being affected by Trump's new policies, NVIDIA was the one that was said to see a huge influence, given its presence in markets like China. However, according to Jensen Huang in an interview with CNBC, the tariffs won't have much of an impact on what NVIDIA is doing.
We are enthusiastic about building in America anyway. We are working with TSMC to get them ready to manufacture chips in the US. In the near-term, the impact of tariffs won't be meaningful.
- NVIDIA's CEO
One of the aims of Trump's tariff policy is to bring semiconductor glory back to the US, and the administration's efforts have worked out, given that firms like TSMC have announced significant investments in the country. This indicates that the AI supply chain will ultimately see its dependence on nations like Taiwan reduced massively, which not only guarantees companies protection from regional conflicts like China-Taiwan but also a much broader supply chain.
For NVIDIA, well, China is a key partner, and a huge contributor to the firm's DC and AI revenue, but with the US trade restrictions, Team Green is allowed to do limited business. This includes selling "cut-down" variants of its AI GPUs, like the H20, and restrictions on the volume of units sold to the nation. Team Green's position in the Chinese market isn't sustainable, considering the change in US policies, along with how counterparts like Huawei are stepping into the competition. NVIDIA has to realize this, whether it means taking a massive hit in revenue.
Team Green's GTC 2025 keynote was a massive achievement for the firm's AI ambitions. Despite all the global conflicts that the company has been forced into, NVIDIA is still thriving.
