Nvidia (NVDA) CEO Jensen Huang said he isn’t expecting tariffs to hurt the company’s financial outlook. During a press briefing following his keynote at Nvidia’s GTC 2025 event, the executive explained that he believes his company’s supply chain is agile enough to withstand the threat of a duty on chips.
“I think in the near term, based on what we know, we’re not expecting significant impact to our outlook and our financials,” Huang said.
President Trump has threatened to levy upwards of 25% tariffs on chips manufactured outside the US, putting companies like Nvidia, AMD, Apple, and others at risk of having to either eat some or all of the increased costs of bringing their chips to America or pass it on to their customers.
But Huang said Nvidia’s network of suppliers is nimble and distributed among a number of countries, which could help the company deal with tariffs.
Read more: The latest news and updates on Trump’s tariffs
“They’re kind of distributed in a lot of places, and it depends on what gets built, what gets purchased in the United States, and where [is] the final destination of the product,” Huang explained. “And so, there’s just a whole lot of equations involved and it depends on which country gets tariffed.”
Over the long term, Huang said he wants to increase Nvidia’s manufacturing capacity in the US.
“The simplest way to think about that is our agility is terrific today, missing onshore manufacturing,” the CEO said. “If we add onshore manufacturing by the end of this year, we should be quite good.”
As of 9:51:20 AM EDT. Market Open.
Nvidia, like many chip giants, relies heavily on Taiwan-based TSMC (TSMC34.SA) to build its hardware. And while the semiconductor manufacturer has a massive presence in its home market, it’s building new facilities in the US and abroad.
In early March, the company announced plans to increase its investment in the US from an already announced $65 billion to $165 billion. The additional $100 billion, the firm said, will go toward the construction of three new fabrication plants, two packaging facilities, and an R&D center.
Still, TSMC has to provide capacity to a number of customers, meaning it won’t be able to allocate all that new manufacturing capability to Nvidia’s needs.
In addition to tariffs, Nvidia is dealing with the threat of increased US export controls on chips headed for the Chinese market. The moves come after China’s DeepSeek revealed that it developed its V3 and R1 models using Nvidia’s below-top-of-the-line chips, raising fears that the country could outpace the US in AI advancements.
