Nvidia CEO Jensen Huang says US tech stack should be global standard
The technology world has once again faced a big issue when Nvidia CEO Jensen Huang said that the American tech stack should become the global standard. Huang compared this to the role of the US dollar, which is considered as a top reserve currency for economies around the world. Huang says that just as the US dollar has served as a backbone for financial systems, American technology should also become the world standard – and China cannot be excluded from this.
Nvidia CEO Jensen Huang on US tech stack as global standard
In an interview with the media, Nvidia CEO Huang said that former US President Trump also believes that the American tech stack should be adopted as a universal standard around the world. Huang says that if the future of world industries and technology is to be strong, then the US tech stack should be considered a benchmark. He also made it clear that it is important to include the Chinese market as well because excluding such a powerful country is not practical for the world economy.
Huang says, “Just like the American dollar is the world standard, we want the world’s industries and technologies to be built on the American technology stack.” He believes that if US tech gets space in China, it will be beneficial for both sides.
Nvidia’s China plans and US approval
Nvidia is the most valuable company in the world today and its biggest strength is its chip business. Nvidia CEO huang told that now the company is again “firing up” its operations in the China market. For this, Nvidia has already got approval and license from the US government. Meaning now officially Nvidia can sell its chips to China, it is just waiting for orders.
This is a big deal because for the past few years there have been a lot of issues between the US and China regarding trade restrictions and technology exports. China is a massive market for Nvidia and the demand there can further accelerate the company’s global growth.
Nvidia Q2 earnings and growth outlook
The company has also shared its second quarter result in which Nvidia’s data center revenue touched a record of $41.1 billion. In the same quarter last year, this revenue was $26.2 billion, which is a huge jump. These numbers are without the sales of low-power H20 chips from China. Meaning if China sales are added, an even bigger revenue figure can come out.
For the future, Nvidia has given guidance that revenue is expected to be around $54 billion in Q3. This is also a conservative estimate because China sales are not included in it. Nvidia CEO Huang said that if China sales are added, it will be a “bonus on top”.
Deal between Nvidia and Trump administration
During the earnings call, Nvidia’s CFO Colette Cress said that the company is waiting for an agreement to be finalized with the Trump administration. Under this agreement, Nvidia will have to give 15% of its China sales to the US government.
Huang also clarified that Nvidia is not thinking of doing any separate deal like Intel. Intel had sold 10% of its business to the Trump administration to stabilize its foundry and chip business. But Huang says that such a deal is not an option for Nvidia right now and this issue has not even come up in discussions.
Battle between Intel and AMD and Nvidia’s advantage
Competition in the chip market is very tough. Intel is busy in its turnaround efforts but is still under pressure from rivals like AMD and Qualcomm. AMD has consistently increased its market share while Qualcomm is becoming a strong competitor to Intel in the PC space with Arm-based processors.
On the other hand, Nvidia has established a dominating position in the AI and data center markets. This is why Huang is confident that if the China market opens up, there are more growth opportunities for Nvidia.
Conclusion
Nvidia CEO Jensen Huang has a clear vision – he wants the US tech stack to become a global standard, just as the dollar has dominated the financial world. He says that if China is included in this equation, there will be a massive growth opportunity for American tech companies and the world technology ecosystem will also become more stable. Nvidia’s current results and guidance show that the company’s position is already strong and if the China market unlocks, growth could be exponential.
Disclaimer:
This article is for informational purposes only. The views and statements expressed herein are for news reporting purposes only. We are not responsible for any financial decision or investment advice.
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