Nvidia's $5 Trillion Reign Faces China Freeze: Jensen Huang Plays the Long Game

This article first appeared on GuruFocus.

Nvidia (NASDAQ:NVDA) could be entering a new phase of global dominance, even as CEO Jensen Huang moved to cool speculation around its China strategy. Speaking in Tainan ahead of meetings with Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), Huang said the company isn't in active talks to sell its next-generation Blackwell AI chips to Chinese firms, pushing back against reports of a potential re-entry into the Chinese market. He added that any future sales would depend on Beijing's policy direction, noting, It's up to China when they would like Nvidia products to go back to serve the Chinese market. Huang also clarified recent comments that China will win the AI race, saying he meant to recognize the country's technical capabilities rather than forecast a geopolitical outcome.

Warning! GuruFocus has detected 6 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator.

The remarks came just as Nvidia hit an extraordinary milestone briefly becoming the world's first $5 trillion company, surpassing both Apple and Microsoft in market value. While the stock has pulled back in recent days, Huang's roadshow from Washington to Seoul underscores a global push to embed Nvidia's technology deep into the fabric of AI infrastructure. The CEO's goal is to prove that the massive wave of AI-driven capital spending from hyperscale data centers to enterprise hardware could translate into durable, long-term returns. His recent outreach to partners in Asia signals that Nvidia's growth engine is still running at full throttle, even as questions swirl around valuations and the sustainability of AI's spending boom.

Still, the road ahead may not be without turbulence. The Trump administration's latest trade accord left U.S. export restrictions intact, blocking Nvidia's most advanced chips from China a market Huang once valued at $50 billion with 50% annual growth potential. That reality, coupled with rising competition from AMD (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO), means Nvidia's next chapter could depend less on access to China and more on keeping global demand for AI computing alive. For investors, the company's staggering ascent is now being tested by the same forces that built it geopolitical risk, insatiable AI demand, and the question of whether trillion-dollar valuations can be justified by what's still to come.

Ver comentarios