Despite widespread fears that President-elect Donald Trump's return to office will lead to tougher trade policies on AI chips to curb China's technological advances, the CEO of Nvidia ( NVDA ), a major manufacturer of AI chips, remains optimistic about the US situation. relations with China under the incoming administration. “Open research is one of the wonders of modern science and perhaps the last form of global cooperation—which we must protect,” Nvidia founder and CEO Jensen Huang said on Saturday (Nov. 23) while accepting an honorary doctorate from Hong. Kong University of Science and Technology (HKUST). Huang, who praised the region's contributions to technologies such as AI, later told reporters that, although he “doesn't know what will happen with the new administration,” Nvidia will continue to balance policy and legal compliance with the development of new technologies.
Nvidia's booming GPU business has made it one of the world's most valuable public companies, with a market capitalization of $3.38 trillion. However, like other chip makers, its footprint in China has been shrinking in recent years amid growing geopolitical tensions and tightened export policies. Nvidia's sales in China accounted for about 15 percent of total revenue in the quarter ended in September, down from 26 percent two years ago.
In an ongoing effort under Trump's first presidential term, the Biden administration in 2022 restricted Nvidia from selling its most advanced chips in China (including Hong Kong). Trump, who is poised to increase the measures, has also said he will impose tariffs on Taiwan, home to Nvidia's biggest supplier, the Taiwan Semiconductor Manufacturing Company (TSMC).
While supporting China's balanced policies, Huang praised China's “huge contribution to open up scientific research that helps develop AI around the world.” Over the years, Nvidia has benefited from its presence in places like Hong Kong, Beijing and Shanghai, according to the CEO. “Since the beginning, we have had the benefit and great pleasure and privilege to watch the amazing technology industry form in China,” he said.
As Huang received his prestigious doctorate from HKUST, he highlighted the fact that the school's alumni have helped found more than 1,800 startups that are still active today. “I'm excited to see so much energy focused on advancing the science of AI and using AI to move forward at HKUST and across China,” he said. Thanks to advances in all new technologies, “the great challenges of our time—the unimaginable challenges we had to overcome in the past—suddenly seem insurmountable,” he added.
Earlier this month, Huang said Nvidia would go along with whatever policies the Trump administration decides on. “We will support management,” Huang said during the earnings call, adding that Nvidia will continue to simultaneously support its customers and compete in the market.
