Nvidia's Huang calls black market data centers made of smuggled parts a 'dead end'

Nvidia CEO Jensen Huang told shareholders that national security takes priority over commercial opportunities, warning that attempts to build AI data centers with smuggled Nvidia parts are a “dead end.” The comments reinforce ongoing U.S. export-control pressure on semiconductor shipments to China and other restricted markets, highlighting geopolitical risk as a key overhang for Nvidia’s growth story. Huang also emphasized that Nvidia’s systems require trusted hardware, software, networking, and support to function properly, implying smuggled components would not be a viable alternative. He noted that about 9% of fiscal 2026 revenue came from China, including Hong Kong, and reiterated Nvidia’s strong free cash flow and capital return plans. The annual meeting also approved executive compensation, re-elected the full board, and passed a shareholder bylaw proposal on simple-majority voting.