Nvidia (NVDA) stock is in full focus today after CEO Jensen Huang issued a strong statement on an important tech policy matter.
Investors have harbored plenty of questions since the year began, as the new presidential administration has considered what its agenda will be on artificial intelligence (AI). The fast-growing frontier of the tech sector has emerged as an increasingly important area of public policy that experts believe legislators cannot afford to ignore.
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Prior to leaving office, President Joe Biden passed an AI diffusion rule that limited the countries to which U.S. companies could sell chips. This quickly sparked a backlash from the tech community, as industry leaders argued that it would negatively impact not just their progress but also the U.S.’s AI dominance.
Huang has issued statements on this policy before, making it clear where he stands. But earlier today, he addressed it again.
Image source: Edelson/Getty Images
Huang doesn’t hold back in his take on China chip curbs
After weeks of waiting, members of the AI community finally got what they had been anxiously awaiting last week, when the White House announced it would be rescinding Biden’s AI diffusion rule. This has been met with praise from many tech-sector leaders, who have made it clear they believe these initial policies were misguided.
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Huang is certainly among them. The Nvidia CEO has been beating the drum on the importance of relaxing U.S.-China chip curbs for months. In early May 2025, he met with representatives of the U.S. House of Representatives Foreign Affairs Committee to discuss the risks that he believed it posed to his company and the broader industry.
Today, he spoke at Taipei‘s Computex tech forum and issued an even more blunt take on the China chip curb policy, describing the export control as a blatant “failure” and highlighting ways in which the new policies will benefit U.S. tech companies.
As he noted, companies like Nvidia stood to lose a valuable market share if they were not able to sell in China. The east Asian nation has its own growing ecosystem of chipmakers who could have likely filled the void left by Western companies, severely compromising the U.S.’s AI dominance.
“The local companies are very, very talented and very determined, and the export control gave them the spirit, the energy and the government support to accelerate their development,” Huang stated. He added that the U.S. should remember that “China has 50% of the world’s AI researchers” and that the country is extremely efficient at producing software.
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Using his own company’s numbers, Huang illustrated the risk posed to firms like Nvidia by the original AI chip curbs. According to him, the leading chipmaker wrote off “billions of dollars” worth of sales, and its share of China’s booming AI chip market has fallen from 95% to 50% during Biden’s time in office.
What’s next for Nvidia and its AI chip stock peers?
Having received good news from Capitol Hill regarding the AI diffusion rule, Nvidia and its peers should be able to move forward with few obstacles. It comes at a highly opportune time, as it will likely enable Nvidia to continue competing with Huawei, a Chinese tech conglomerate that announced a new chip in April that it claims can compete with one of Nvidia’s most popular graphics processing units (GPUs).
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Wall Street seems optimistic about Nvidia’s prospects. Loop Capital Markets recently reiterated its Buy rating on NVDA stock and bullish price target of $175.
“The gist is our work suggests NVDA’s Apr Q print and July Q guide can be ‘good enough’ vs. Street to support the stock into what we believe is a 2HCY2025 materially stronger than Street,” the investment bank states, though it notes that there remain a lot of “moving parts” regarding Nvidia’s future.
Even so, this recent development is likely a bullish indicator for AI stocks. It eases restrictions on chip sales and indicates that the Trump administration’s AI policy will include less regulation, just as Trump and Vice President JD Vance have discussed.
This will likely set the stage for a future in which companies like Nvidia continue to dominate the AI market.
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