Nvidia CEO Sparks Debate With AI Race Comments

Nvidia (NVDA) stock dropped 1.78% Wednesday after the Financial Times published remarks from CEO Jensen Huang, who said “China is going to win the AI race” — citing the country’s regulatory environment and access to power as key advantages.

Hours later, Nvidia’s official newsroom on X released a revised statement clarifying Huang’s intent:

“As I have long said, China is nanoseconds behind America in AI. It’s vital that America wins by racing ahead and winning developers worldwide.”

Context and Market Impact

The episode underscored growing tensions around AI competition between the U.S. and China, and the delicate balance Nvidia faces as a dominant chip supplier affected by U.S. export restrictions.

Following the initial report, NVDA shares slumped late in Wednesday’s session, but rebounded 1.3% premarket Thursday as investors digested the clarification.

Broader Implications

Huang’s comments likely aimed to pressure the Trump administration to expedite energy infrastructure approvals for AI data centers.
U.S. Energy Secretary Christopher Wright has reportedly been exploring faster power-grid connections for data centers.
Microsoft CEO Satya Nadella echoed similar concerns, saying the biggest challenge isn’t chips but “having warm shelves to plug into.”

Despite geopolitical friction, Nvidia remains the top-performing AI stock, with over $500B in orders for its Blackwell and Rubin GPUs through 2026.

Market Insight

The timing of Wednesday’s selloff — just before the FT article’s publication — fueled speculation of premature information leaks, as selling activity intensified minutes before the market close.