$15 Billion in Lost Sales and a $5.5 Billion Write-Off
NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang has issued a blunt warning: U.S. export restrictions on AI chips may be doing more harm to America’s global tech leadership than to its intended targets. In a candid interview with Stratechery, Huang disclosed that recent regulatory hurdles led NVIDIA to:
Write off $5.5 billion in unsellable AI chip inventory
Walk away from $15 billion in revenue, mostly due to the inability to sell advanced chips like the H20 in China
Lose roughly $3 billion in potential tax contributions
Huang remarked, “No company in history has ever written off that much inventory.” His message is clear: the current diffusion rules are undermining American innovation.
Strategic Risks: Is China Gaining from U.S. Policy?
Huang argued that restricting semiconductor exports might unintentionally boost China’s domestic AI development. Without U.S. competition, Chinese companies are forced to innovate, which could fast-track the rise of an independent tech ecosystem. That ecosystem, Huang cautioned, could spread globally, sidelining U.S. influence.
“If we don’t compete in China… their leadership and their technology will diffuse all around the world,” Huang warned.
He also emphasized that AI development is inherently “full stack”—from chips and systems to software—and cannot be regulated effectively by isolating one layer.
A Call for Open Tech Diffusion
Instead of trying to restrict access to American technology, Huang believes the U.S. should accelerate global adoption of its platforms to remain competitive. “Limiting other countries’ access to American technology is a mission expressed exactly wrong,” he said.
Investor Watch: Valuation and Revenue Risk
Assess NVIDIA’s long-term growth and risk profile using the Financial Growth API.
Explore revenue impact from China-related segments with the Revenue Product Segmentation API.
Bottom Line
NVIDIA’s friction with U.S. regulators is more than a policy spat—it’s a financial and geopolitical inflection point. As AI becomes the battleground of tech leadership, the cost of isolation may outweigh the benefit of containment.
