Nvidia Just Nuked China From Its Forecasts… And Wall Street Didn’t Even Flinch

Jensen Huang just did exactly what every Tesla board member wishes they could do to China: delete the market from their forecast spreadsheets and keep it moving. In short, Nvidia will now exclude the entire Chinese market (a.k.a. The one with 1.4 billion potential customers and a government more obsessed with AI than American wives are with Stanley cups)... from its revenue and profit forecasts. Why? Because as we all know, the US government is busy playing c**k block of global semiconductors.  

(Source: Giphy) 

In short, after years of selling GPUs to everyone from crypto miners to Chinese hackers, Nvidia is now treating China like Fight Club… first rule, don't talk about the revenue you’re not getting. Huang, live from Paris in his leather jacket, told CNN that Nvidia’s future guidance will straight-up ignore China. “If export controls ease, that’s a bonus. Otherwise, we’re not counting it.” Translation: don’t @ me when the next earnings call sounds like we forgot the world’s biggest market even exists. 

For more context, last quarter, Nvidia posted numbers so absurd they looked like a typo: revenue up 69% year-over-year. But then came the punchline… export controls robbed them of $2.5 billion in sales, all because Uncle Sam is terrified that Xi Jinping will turn H20 chips into a T-1000. And now that even the made-for-China H20s need a “special license” (which they’re not getting)... Jensen presumably said, “F*k it”. 

(Source: CNN) 

Wall Street's reaction on the matter? They didn’t even blink. Shares inched up on the announcement, mainly because as it stands, no amount of missing China revenue can kill Nvidia’s AI mill. Meanwhile, Nvidia’s competition is basically just Huawei in a trench coat, cackling as the US government hands them market share on a silver platter. Dan Ives at Wedbush called it out… every time the US adds another regulation, Huawei gets more business and Nvidia gets another reason to day drink. 

Additionally, last month Jensen called US chip curbs a “failure” and said they’re hurting American companies more than Beijing. This week, he one-upped himself: “The goals of these controls aren’t being achieved.” Translation: He’s literally speaking with the energy of someone being forced to give a live BDSM safety demonstration to Congress… while half of them still think “safe word” is a new Medicare app LOL. 

(Source: Giphy) 

As for Nvidia’s next steps, they are building the world’s first industrial AI cloud in Europe, dropping their Blackwell architecture everywhere that isn’t embargoed, and letting the US and China slap fight while they count euros instead of yuan. Bigly. 

In the end, regardless of the hurdles that are thrown Nvidia’s way, Jensen Huang has proven his ability to hurdle them with ease. As for investors, they could care less about China’s numbers considering how much fat cash the company is already printing. Meaning, keep your eyes on the GOAT of AI, and place your bets accordingly. Until next time, friends…

At the time of publishing, Stocks.News holds positions in Tesla as mentioned in the article.