Wall Street was pleased with Nvidia’s quarterly report on Wednesday. Still, the CEO Jensen Huang said the company is leaving billions of dollars in revenue on the table because it can no longer sell to China.
“The $50 billion China market is effectively closed to U.S. industry,” Huang told analysts at the beginning of his prepared remarks on the earnings call. “As a result, we are taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed.”
This tariff situation needs to be resolved soon, or it will start to affect every American company and completely disrupt global trade, which in turn will erode the profit margins for companies that are already priced for maximum efficiency.
