Nvidia can reportedly lose $15 billion revenue in US-Huawei chip battle

US has laid out new chip guidelines for Huawei, but these rules seem to be more stringent for Nvidia than for the Chinese company and pose a threat to the US chipmaker’s revenue. A new report reveals the opinion of Nvidia CEO on this matter.

Jensen Huang, the CEO of Nvidia, recently had a talk with the media over the US-China tech tensions. During the interrogation, the CEO shared his fear regarding the US ban on Huawei chips, as these restrictions can hurt the American firms as well.

Huang said that he felt bad about the H20 chips ban in China. While the US restricted the flow of Nvidia H20 processors to Chinese customers, it also blocked the path for the US firm to generate revenue from one of the second-largest markets.

Nvidia says that the H20 chip ban in China can cause the company to lose $15 billion in revenue. This will be a significant drop in the firm’s total sales progress.

On the flip side, the US government can miss nearly $3 billion in tax revenue. This will happen as US restrictions will force Chinese companies to purchase Huawei AI chips in the market, eventually helping it in its AI segment growth.

Huawei will further use these funds for the R&D segment to fight against Nvidia. Once the Chinese tech giant gains higher usage rates, Nvidia’s AI market share will gradually decrease in China.

Nvidia has stressed many times that restricting the US AI chip sales to China will help the local tech vendors like Huawei to create their growth space, harming the revenue growth of the US chip producers. Hence, US is updating its chip rules for China.

Nvidia can reportedly lose $15 billion in revenue in the US-Huawei chip battle (Image Credits: Nvidia/X(

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