During a Q&A session following NVIDIA's annual shareholder meeting on June 24, Huang stated, "National security is the top priority," reaffirming his commitment to prioritizing U.S. interests.
Huang noted that companies attempting to smuggle NVIDIA chips or systems into countries subject to export restrictions, such as China, would face significant operational challenges. He explained that without NVIDIA's technical support or repairs, it would be difficult to effectively operate advanced AI infrastructure.
He described advanced AI data centers as massive integrated systems that require reliable hardware, software, networking, and ongoing support, adding that attempts to piece together data centers with smuggled products would lead to a dead end.
Huang's comments come as the U.S. government has intensified controls on AI semiconductor exports to China, viewing it as a national security issue. Since 2022, the U.S. has applied export controls on NVIDIA's advanced AI chips, and the company has since developed products tailored for the Chinese market that comply with U.S. regulations.
However, the U.S. government granted permission for the export of NVIDIA's H200 chip to China last year. The H200 is also used by U.S. companies. Huang mentioned that while the export approval was granted, NVIDIA has yet to generate revenue from that chip, and it remains uncertain whether China will allow imports of NVIDIA products.
In the fiscal year 2026, the share of revenue from China, including Hong Kong, accounted for about 9% of NVIDIA's total revenue, a decrease compared to 2025 and 2024.
Addressing questions about the return on investment (ROI) for AI, Huang stated, "The answer is already clear." He explained that when AI produces useful outputs, such as code generation, token generation using NVIDIA systems becomes profitable, leading companies to require more computing power.
He highlighted that GitHub's pull requests have nearly tripled this year due to AI's influence, asserting, "While NVIDIA systems may not have the lowest purchase cost, they generate the lowest token costs, the highest token throughput, and the most revenue."
Huang also reaffirmed NVIDIA's commitment to returning capital to shareholders, stating that the company plans to return 50% of its free cash flow through stock buybacks and dividends over the next few years. NVIDIA generated over $96 billion in free cash flow in the fiscal year 2026. He remarked, "NVIDIA offers investors a unique combination of exceptional growth, high margins, free cash flow execution, and expanding capital returns."
During the shareholder meeting, an advisory proposal on executive compensation was approved, and all ten directors were re-elected. A proposal from external shareholders to amend the company’s bylaws to allow all shareholder votes to pass with a simple majority was also approved.
* This article has been translated by AI.
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