During a recent shareholder meeting, Nvidia CEO Jensen Huang stated that the company would prioritize U.S. national security if commercial opportunities conflicted with it. He highlighted that companies attempting to smuggle Nvidia's chips into countries with export restrictions would face significant challenges, as Nvidia would not support or repair such systems.
This statement comes amid increasing concerns from U.S. regulators about the risks of exporting AI technology to nations like China. Huang noted that while Nvidia has produced China-specific chips to comply with U.S. regulations, the company has yet to generate revenue from these exports. In fiscal 2026, only about 9% of Nvidia's revenue came from China, a decline from previous years.
Huang also discussed the profitability of AI systems, stating that as AI output becomes more useful, the demand for Nvidia's computing power increases. He reiterated Nvidia's commitment to returning 50% of its free cash flow to investors through share repurchases and dividends, highlighting the company's strong financial performance with over $96 billion in free cash flow for fiscal 2026.
Shareholders also approved the executive compensation plan and re-elected all board members, with one proposal for changing voting bylaws passing