Nvidia Surges to Record High Despite U.S.-China AI Chip Restrictions, CEO Eyes Robotics as Next Big Growth Area

Nvidia's shares reached a record high, propelling the AI chipmaker back to the position of the world's most valuable company. This achievement comes despite ongoing challenges from U.S. government regulations that have significantly impacted the company's Chinese market. In April, the Trump administration introduced new rules that prohibited the sale of Nvidia's H20 AI processors, which were designed to comply with previous restrictions. Jensen Huang, Nvidia's CEO, announced last month that these changes would result in an estimated $8 billion loss in sales and a $4.5 billion inventory write-off. "The $50 billion China market is effectively closed to U.S. industry," Huang stated, underscoring the severity of the situation. Adding to the pressure, the administration is expected to implement further rules expanding export restrictions on AI chips. Despite these regulatory hurdles, Nvidia's earnings report in May revealed a robust 69% year-over-year revenue increase, driven by a 73% surge in its data center business. Analysts predict that for the full fiscal year, Nvidia will see 53% revenue growth, reaching nearly $200 billion, according to data from LSEG. At Wednesday's annual shareholder meeting, Huang highlighted that beyond AI, robotics represents Nvidia's next major growth opportunity. He emphasized the company's commitment to innovation and expansion in both areas, demonstrating resilience and forward-thinking in the face of significant market constraints.