Nvidia CEO Jensen Huang says tariff impact won’t be meaningful in the near term

Nvidia CEO Jensen Huang recently addressed concerns about the impact of President Donald Trump’s tariffs on the company, stating that the short-term effects will not be significant. In an interview with CNBC’s “Squawk on the Street,” Huang emphasized the importance of AI in driving innovation across industries and expressed enthusiasm for expanding manufacturing in the United States.

“We’ve got a lot of AI to build … AI is the foundation, the operating system of every industry going forward,” Huang explained. “We are enthusiastic about building in America.” He noted that partners like TSMC, Foxconn, and Wistron are collaborating with Nvidia to bring manufacturing onshore, making it a viable long-term strategy despite the current trade tensions.

President Trump’s imposition of tariffs on major trading partners has sparked a trade war, with retaliatory measures from Mexico, Canada, and China. Despite the uncertainty surrounding trade policies, Huang remains optimistic about Nvidia’s growth prospects and commitment to domestic manufacturing.

While Nvidia’s stock has experienced a decline since reaching a record high earlier this year, Huang remains confident in the company’s position in the AI market. He dismissed concerns raised by Chinese AI lab DeepSeek about potential cost advantages, emphasizing the need for advanced chip technology to drive AI performance.

Export controls imposed on Nvidia have limited its business operations in China, leading to a decline in revenue from the region. Huang acknowledged the challenges posed by export restrictions and competitive pressures from companies like Huawei in the Chinese market.

Looking ahead, Huang reiterated Nvidia’s focus on innovation and collaboration with partners to strengthen its presence in the AI industry. Despite the current trade environment, he remains bullish on the company’s growth prospects and the potential for onshore manufacturing in the United States.

In conclusion, Nvidia’s CEO Jensen Huang remains optimistic about the company’s future despite trade tensions and regulatory challenges. With a strong emphasis on AI innovation and domestic manufacturing, Nvidia is poised to navigate the evolving landscape of the technology industry and drive continued growth in the years to come.