US chip export controls helped, instead of hindering, China’s growing chip dominance, says Nvidia CEO Jensen Huang. The head of one of the world’s most valuable companies doubled down on criticism of US chip export restrictions, calling the policy a “failure” that has cost American firms bns of USD and accelerated China’s domestic chipmaking efforts during a speech at Computex 2025 in Taipei (watch, runtime: 1:42:51). Huang argued that the curbs undermined US competitiveness, adding that if the US doesn’t sell, “the competition will come.”

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Nvidia itself has had the hard end of much of the restrictions, having taken a USD 5.5 bn hit after the Trump administration expanded controls to cover its H20 chip — a downgraded model initially designed to comply with earlier rules, according to the Financial Times.

“Fundamentally flawed” assumptions drove the policy, according to Huang, who said said the now-scrapped “AI diffusion rule” — which imposed a three-tier licensing system blocking China from accessing US-made chips — ultimately cost US companies bns of USD in lost sales, including for Nvidia and AMD, and turbocharged China’s domestic chipmaking push.

Chinese manufacturers filled the vacuum as Nvidia’s share of the Chinese AI chip market dropped from 95% to 50% since 2022, according to Huang. He pointed to Huawei as one of its several fast-moving rivals, adding, “local companies are very determined, and export controls gave them the spirit, and government support accelerated their development.”

So, what’s next? The Trump administration is reportedly working on a new global licensing system based on government-to-government agreements, replacing the Biden-era AI diffusion rule — a move that has drawn support from Huang.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning. Japan’s Nikkei is down 0.8%, Korea’s Kospi is looking at losses of 1.3%, the Hang Seng is also in the red, down 0.5%, while the Shanghai Composite is flat.

EGX30

31,837

+0.7% (YTD: +7.1%)

USD (CBE)

Buy 49.80

Sell 49.93

USD (CIB)

Buy 49.8

Sell 49.9

Interest rates (CBE)

25.00% deposit

26.00% lending

Tadawul

11,304

-1.2% (YTD: -6.1%)

ADX

9,666

-0.4% (YTD: +2.6%)

DFM

5,438

-0.5% (YTD: +5.4%)

S&P 500

5,845

-1.6% (YTD: -0.6%)

FTSE 100

8,786

+0.1% (YTD: +7.5%)

Euro Stoxx 50

5,454

0.0% (YTD: +11.4%)

Brent crude

USD 64.63

-1.2%

Natural gas (Nymex)

USD 3.37

-1.7%

Gold

USD 3,342

+0.9%

BTC

USD 108,273

+1.6% (YTD: +15.6%)

S&P Egypt Sovereign Bond Index

867.1

-0.1% (YTD: +11.5%)

S&P MENA Bond & Sukuk

143.3

+0.2% (YTD: +2.4%)

VIX (Volatility Index)

20.87

+15.4% (YTD: +20.3%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 4.3 bn (7.3% below the 90-day average). Local investors were the sole net buyers. The index is up 7.1% YTD.

In the green: Fawry (+5.0%), ADIB (+4.7%), and Beltone Holding (+4.3%).

In the red: Abu Qir Fertilizers (-2.4%), Rameda (-2.0%), and Eipico (-1.5%).

CORPORATE ACTIONS-

MM Group for Industry and International Trade (MTI) is looking to increase its authorized capital 5X to EGP 5 bn, up from EGP 1 bn, and raise its issued capital to some EGP 1.2 bn, up from EGP 936.6 mn, by issuing some 377.7 mn new shares at a nominal value of EGP 0.62 per share, the company said in an EGX disclosure (pdf).

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