Nvidia revenue at risk due to US AI chip export limits

Nvidia faces significant revenue pressure following new US restrictions on artificial intelligence chip exports. The regulations, aimed at limiting the distribution of advanced processors to most countries outside close US allies, are intended to prevent China from accessing technology that could strengthen its military capabilities. Analysts warn these curbs could hinder Nvidia’s growth, as nearly half of its chip sales could be affected.

A substantial portion of Nvidia’s revenue comes from global markets, with 56% of sales outside the US and China accounting for around 17%. The company’s stock dropped by 2% following the announcement. Nvidia Vice President of Government Affairs Ned Finkle argued the restrictions could stifle global innovation and weaken US leadership in AI development by imposing bureaucratic control over chip design and marketing.

Industry experts believe major cloud providers such as Microsoft, Google, and Amazon could benefit from the new rules. These firms may receive exemptions for data centre development, allowing them to expand market share as AI leaders. Their financial strength and advanced infrastructure make them well-positioned to thrive under the revised framework.

Uncertainty remains over the long-term impact of the export curbs, with the rules set to take effect in 120 days. Some analysts suggest the incoming Trump administration might revise the policy, potentially negotiating new deals with individual firms and countries while maintaining a focus on national security.