(Reuters) -Nvidia will exclude the Chinese market from its revenue and profit forecasts following the imposition of tough U.S. restrictions on chip sales to the region, CEO Jensen Huang told CNN on Thursday.
When asked whether the U.S. will lift export controls after trade talks with China in London this week, Huang said that he was not counting on it.
“But, if it happens, then it will be a great bonus. I’ve told all of our investors and shareholders that, going forward, our forecasts will not include the China market,” Huang said.
He also criticized U.S. chip export controls again in his interview with CNN.
“The goals of the export controls are not being achieved,” Huang added. “And so I think, with all export controls, the goals have to be well-articulated and tested over time.”
Huang had in May criticized the new export curbs imposed by U.S. in April, which prevented Nvidia from selling its H20 chip made for the Chinese market, which he had called “a springboard to global success.”
Nvidia said on Thursday that it is still evaluating its “limited options for the China market. Until we settle on a new product design and receive approval from the U.S. government, we are effectively foreclosed from China’s $50 billion data center market.”
The export limits cost Nvidia $2.5 billion in sales during its fiscal first quarter, and it expects another $8 billion sales hit in the second quarter.
It reported $4.6 billion in revenue from H20 sales in China as customers stockpiled the chips before the curbs set in, with the China business accounting for 12.5% of overall revenue.
Nvidia will launch a new artificial intelligence chipset for China at a significantly lower price than its recently restricted H20 model. It plans to start mass production as early as June, Reuters exclusively reported in May.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
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