Nvidia CEO Touts 'Very Strong' Blackwell Demand Amid China Sales Halt
Jensen Huang reaffirms TSMC production partnership as the chipmaker navigates strict US export controls and recent market volatility.
Nvidia CEO Jensen Huang struck a confident tone on Friday, highlighting “very strong demand” for the company’s next-generation Blackwell AI chips and underscoring crucial production support from manufacturing partner TSMC, even as the firm navigates a complete halt on advanced chip sales to China.
Speaking at an event in Taiwan, Huang’s comments aimed to reassure investors of the company’s growth trajectory despite significant geopolitical headwinds and a recent bout of stock market volatility. Nvidia’s shares have recently experienced a sharp pullback, shedding over $500 billion in market value in the past week amid what some analysts have termed “valuation fatigue” after a meteoric rise.
Despite the recent dip, Nvidia’s market capitalization remains immense at over $4.5 trillion. The company’s stock saw a modest uptick in Friday trading, closing at $188.15. Analyst sentiment remains overwhelmingly positive, with a consensus “Strong Buy” rating and an average price target of approximately $230 suggesting significant upside potential.
“The demand for Blackwell is very, very strong,” Huang stated, reinforcing the company's outlook. He emphasized the critical role of Taiwan Semiconductor Manufacturing Co. (TSMC), noting, "Nvidia's success would not be possible without TSMC," according to reports from Reuters. This public affirmation of the partnership comes as TSMC ramps up production to meet the intensive demands of Nvidia's advanced processors.
The confidence in demand and production provides a strategic counter-narrative to the challenges posed by Washington's stringent export controls. The Trump administration has effectively barred Nvidia from selling its most advanced technology, including the new Blackwell platform, to customers in China. Huang confirmed the reality of this policy, telling reporters there were “no active discussions” to sell the high-end chips to the Chinese market.
This marks a significant strategic pivot for Nvidia, which once saw China as a major growth market. The company’s revenue from advanced AI products in China is now projected to fall to near-zero in its 2026 fiscal year, a stark drop from an estimated $17 billion in the 2025 fiscal year. Recent reports from The Wall Street Journal indicated that senior White House officials successfully advised against a push to allow even lower-spec versions of the Blackwell chip to be sold to China, citing national security concerns.
While Huang expressed a long-term hope to one day resume business in the region, he acknowledged the decision rests with the U.S. government. For now, Nvidia’s strategy is firmly focused on supplying the surging demand from global markets outside of China, driven by the broad adoption of generative AI by tech giants like Microsoft, Meta, and Google.
Investors are now weighing the chipmaker’s ability to capitalize on this powerful global demand against two key pressures: the loss of the vast Chinese market and a stock valuation that has priced in enormous future growth. Huang's latest remarks serve to anchor the company's narrative firmly on the strength of its technology and its robust global partnerships, signaling that even without China, the AI revolution it powers has ample room to run.