Yesterday I appeared on CNBC’s Money Movers to discuss President Trump’s trip to China, Jensen Huang’s involvement, and what it could all mean for NVIDIA (which announces earnings next week) and other AI chip companies. You can watch an edited video of this conversation via the link below, or read on for an AI-generated, human-edited overview and summary of the discussion.
Link to edited segment.
Overview
Patrick Moorhead discusses the possible market impacts of NVIDIA CEO Jensen Huang joining President Trump’s diplomatic trip to China. Despite NVIDIA’s massive scale, confidence remains high around the Blackwell and Vera Rubin architectures in the context of sustained demand from hyperscalers. The conversation explores the broader semiconductor landscape, noting that while NVIDIA maintains a dominant market share in datacenter AI chips, other possible beneficiaries of current trends include SaaS companies and edge computing players. Future growth is anticipated in AI-enabled PCs and smartphones, as well as new agentic devices.
Outline
Impact of NVIDIA and Jensen Huang in China
- Carl Quintanilla of CNBC introduces the segment by focusing on the potential impact of NVIDIA CEO Jensen Huang joining President Trump’s trip to China.
- Patrick Moorhead explains that any positive news connected with Huang’s trip regarding China negotiations will likely boost NVIDIA’s stock.
- Moorhead highlights that most investors are assuming zero China revenue for NVIDIA, meaning that even a small improvement could lead to significant growth.
NVIDIA’s Market Dominance and Prospects for Future Growth
- Quintanilla asks about NVIDIA’s upcoming earnings report and whether share-price targets in the low-three-hundred-dollar range are reasonable.
- Moorhead suggests that while Huang may not discuss specific China talks during the earnings call, he will likely articulate strong confidence in the company’s growth.
- He points to the success of the Blackwell and Vera Rubin architectures as key drivers of future growth for NVIDIA.
President Trump’s Approach to Trade Negotations with China
- Sara Eisen of CNBC mentions that President Trump has expressed a desire to open China for U.S. businesses as a primary request to Xi Jinping, noting that it’s unclear whether this extends specifically to a semiconductor deal.
- Moorhead gives his opinion that Trump is focused for the moment on the big picture, which is that China allows only “very slim” operation for U.S. tech companies there.
- He adds that Trump could use the promise of NVIDIA and AMD GPUs as part of the broader trade negotiation with China.
NVIDIA’s Continued Dominance in Datacenter AI
- Quintanilla shifts the conversation to projections of NVIDIA’s future datacenter revenue.
- Moorhead asserts that the debate over downstream AI demand has ended, with hyperscaler commitments supporting massive growth projections.
- Moorhead projects that Nvidia will maintain a dominant 75% to 80% market share in 2027 despite competition from AMD and internal chip development by hyperscalers.
Broader AI Ecosystem and Emerging Trends
- Eisen raises the topic of other beneficiaries of the AI build-out in the semiconductor space, such as Nebius and Wolfspeed.
- Moorhead argues that despite its high share price, NVIDIA remains a top opportunity, but he also sees value in SaaS stocks that have been unfairly penalized.
- Moorhead explains that SaaS is not disappearing but is instead undergoing a restructuring of valuation multiples.
- He identifies “AI on the edge” as another growth area, specifically mentioning potential in Apple, PCs, and smartphones.
- Moorhead also mentions Qualcomm’s rise in the datacenter market and its collaboration with OpenAI on new agentic devices.
Companies Mentioned
- NVIDIA
- Google
- Meta
- AMD
- Nebius
- Wolfspeed
- Apple
- Qualcomm
- OpenAI
Keyword Summary
NVIDIA, Jensen Huang, china trade policy, H200, Blackwell, Vera Rubin, data center revenue, hyperscalers, AMD, GPUs, SaaS, semiconductors
Founder, CEO and Chief Analyst | + posts
Patrick Moorhead is the founder, CEO, and chief analyst of Moor Insights & Strategy. His big-picture view of technology is grounded in more than 20 years as an executive leading strategy, product management, product marketing, and corporate marketing functions at NCR, AT&T, Compaq, and AMD. He has shared his expertise in areas from silicon to infrastructure to enterprise SaaS and everything in-between in thousands of national broadcast appearances (CNBC, Yahoo Finance), articles (Forbes, CIO), research-based analyses, and podcast episodes. Today, he has 100+ CXO-level advisory clients and is often ranked the #1 technology industry analyst by ARInsights.
