Nvidia CEO Jensen Huang Outlined 4 Key AI Growth Drivers Despite $8 Billion China Setback — Here's What They Are

On Wednesday, Nvidia Corporation NVDA revealed that even with a projected $8 billion revenue loss due to U.S. export curbs on China, the chipmaker's guidance and AI momentum remain stronger than expected.What Happened: During its first-quarter earnings call, Nvidia executives disclosed that new U.S. restrictions on its H20 AI chips bound for China would cost the company about $8 billion in the current quarter.Despite that setback, Nvidia maintained bullish guidance, citing accelerating demand across multiple business lines. Colette Kress, Nvidia's CFO, confirmed, "Had the export controls not occurred, we would have had orders of about $8 billion for H20."Still, the company expects $45 billion in the second–quarter revenue, well above Wall Street forecasts, driven by surging demand for its next-gen Blackwell chips and broader AI infrastructure growth.CEO Jensen Huang highlighted four key growth drivers: reasoning AI, rescinding of the AI diffusion rule, enterprise AI adoption and industrial AI linked to global factory expansion.Huang also praised President Donald Trump. “President Trump wants America to win,” Huang stated, adding, “He also realizes that we're not the only country in the race and he wants the United States to win.”“[Trump] recognizes that we have to get the American stack out to the world and have the world build on top of American stacks, instead of alternatives,” the CEO said.Why It’s Important: Nvidia posted first-quarter revenue of $44.1 billion, marking a 69% increase year-over-year and a 12% rise from the previous quarter, surpassing the Street consensus estimate of $43.2 billion.On April 9, Nvidia was hit with an export ban on its H20 products to China. As a result, the company recorded a $4.5 billion charge in the first quarter tied to excess H20 inventory and purchase commitments.Despite the new export licensing rules, H20 product sales totaled $4.6 billion for the quarterMeanwhile, earlier this week, it was reported that Japan plans to import nearly $7 billion worth of U.S.-made semiconductors — a move that could provide a substantial boost to chipmakers like Nvidia and Advanced Micro Devices AMD, as trade talks with the Trump administration continue.Price Action: Nvidia shares rose 4.89% in after-hours trading to $141.40 at the time of writing, after slipping 0.51% during Wednesday's regular session, according to Benzinga Pro.Meanwhile, Benzinga Edge Stock Rankings gave NVDA a strong growth score of 98.75%. Click here to see how it stacks up against other high-performing stocks like AMD.