Jensen Huang Dumps China for US Security Now That Nvidia's Sales There Tanked

Nvidia chief executive officer Jensen Huang completely shifted his public stance during the annual shareholder meeting, declaring that national security takes absolute precedence over commercial interests.

This sudden patriotic awakening stands in stark contrast to his recent diplomatic world tour, where he actively lobbied officials in Washington and Beijing, warning that export bans would only force China to build its own silicon. Apparently, those warnings are yesterday's news now that China and Hong Kong accounted for just 9% of Nvidia's revenue in the latest fiscal year, down from 13% previously.

Even the export-compliant H200 chip, specifically castrated to bypass US regulations, has failed to generate revenue as the Chinese government quietly pressures domestic firms to buy local instead. Faced with this cold shoulder, Huang also took a swipe at the black market, mockingly pointing out that assembling an AI data center from smuggled chips is a technological dead end because modern AI infrastructure requires constant official software updates, networking, and engineering support.

This smuggling warning arrives on the heels of a massive scandal where the co-founder of Super Micro Computer was accused of a $2.5 billion scheme to illegally funnel AI servers into China. On the brighter side of the balance sheet, Huang declared the debate over artificial intelligence profitability officially over, citing a threefold increase in AI-generated code pull requests on GitHub. To keep investors happy while navigating these geopolitical waters, the company authorized an $80 billion stock buyback program.

Ultimately, corporate morality remains the most flexible asset on the balance sheet. When a massive geopolitical battleground shrinks to a mere single-digit revenue sliver, wrapping oneself in the national flag becomes a highly cost-effective public relations strategy.

Source: CNBC