Nvidia's Huang expects China chip sales

Jensen Huang said on May 18 that he expects China to eventually reopen to U.S. artificial-intelligence chips, offering investors a fresh signal on one of Nvidia’s biggest geopolitical constraints. Huang made the remarks days after traveling to Beijing with President Donald Trump, according to Bloomberg and Reuters. The comments landed as investors brace for Nvidia’s next earnings report, which many on Wall Street are treating as a test of whether the AI spending boom is holding up. They also came as Amazon, Taiwan Semiconductor Manufacturing Co. and a small but visible group of skeptics all positioned around the same question: how durable Nvidia’s lead remains. ### What exactly did Huang say about China? Bloomberg reported that Huang said Chinese authorities would eventually allow imports of American AI chips, though he did not give a timeline. “My sense is that over time the market will open,” he said in an interview Monday, according to Bloomberg’s report. Reuters separately reported Huang said he believes China’s market will open up to U.S. chip suppliers after last week’s trip. (bloomberg.com) Reuters said Huang framed the issue as a Chinese policy choice, saying the Chinese government would decide how much of its domestic market it wanted to protect. The comments followed his appearance at the Great Hall of the People in Beijing on May 14, where he accompanied Trump and business executives, Reuters reported. (bloomberg.com) ### Why are investors focused on this now? Nvidia’s upcoming earnings report has become a focal point for investors trying to gauge AI demand, capital spending and the effect of China restrictions on revenue. The briefing material for this story cited market attention on Nvidia’s results as a test of the broader AI rally, with investors looking for evidence on Big Tech spending and China sales. Reuters’ May 18 report also tied Huang’s remarks directly to Nvidia’s efforts to navigate export controls and preserve access to a major market. (money.usnews.com) Benzinga reported on May 18 that Leopold Aschenbrenner’s Situational Awareness fund disclosed put options representing roughly $8.5 billion in notional value against Nvidia and other chip names ahead of earnings. That filing does not by itself show when the bets were placed or whether they remain unchanged, but it added to attention around the report. (money.usnews.com) ### What is Amazon doing if it also has its own AI chips? Business Insider reported that Amazon is working on an internal effort called “Titus” to redesign data centers so they can handle future generations of more power-hungry AI systems, including Nvidia GPUs as well as Amazon’s own Trainium chips. Secondary reports citing Business Insider said the project involves changes to power architecture, liquid cooling, server layouts and deployment schedules. (benzinga.com) Those details matter because they show that even companies investing in in-house silicon are still building facilities around Nvidia-class GPU requirements. Business Insider’s reporting, as summarized by secondary sources, also said Amazon is planning record capital expenditures this year, with AI infrastructure a major driver. (letsdatascience.com) ### Why is TSMC part of the same story? Bernstein raised its price target on TSMC to NT$2,200 from NT$1,800, according to multiple reports that cited the note. Those reports said Bernstein based the move on strong AI demand, resilient non-AI demand and expectations that AI-related revenue could exceed 20% of TSMC sales by 2026. (letsdatascience.com) TSMC is central because it manufactures advanced chips for Nvidia and other AI companies. Bernstein’s view, as described in the reports, was that AI customers facing capacity constraints would continue to support utilization even if some non-AI demand softened. ### What happens next for Nvidia? Nvidia’s next scheduled milestone is its earnings report this week, which investors are expected to use to measure data-center demand, China exposure and the pace of AI infrastructure spending. (blockonomi.com) Huang’s May 18 comments did not announce any new approval for shipments into China, and Reuters reported that export licenses and policy decisions remain in government hands. Amazon’s data-center buildout, Bernstein’s TSMC target and the bearish options positions disclosed around chip stocks all point to the same near-term event: Nvidia’s results and what the company says about demand and China on the call. (money.usnews.com)