June 12 (Reuters) -

Nvidia ( NVDA ) will no longer include the China market in

its revenue and profit forecasts following stringent U.S. trade

restrictions on chip sales to the region, CEO Jensen Huang told

CNN on Thursday.

When asked if the United States would lift the export

controls after the trade discussions with China in London this

week, Huang said he was not counting on it.

"But, if it happens, then it will be a great bonus. I've

told all of our investors and shareholders that, going forward,

our forecasts will not include the China market," he said.

Huang reiterated his criticism of U.S. chip export curbs

during his CNN interview, building on his earlier remarks about

the restrictions from April that prevented Nvidia ( NVDA ) from selling

its H20 chip made for China.

"The goals of the export controls are not being achieved,"

he said. "And so I think, with all export controls, the goals

have to be well-articulated and tested over time."

"Beyond next quarter, if Nvidia ( NVDA ) is not able to resume sales

into China, we believe there may be some downside to

expectations for calendar year 2026," said D.A. Davidson analyst

Gil Luria.

Nvidia ( NVDA ) was still evaluating its "limited options for the

China market", it said on Thursday.

"Until we settle on a new product design and receive

approval from the U.S. government, we are effectively foreclosed

from China's $50 billion data center market," the company said.

The export limits cost it $2.5 billion in sales during the

first quarter and it expects an $8 billion sales hit in the

second quarter.

"By zero-basing China, Nvidia ( NVDA ) removes a volatile variable

that neither Wall Street nor the Commerce Department can

reliably handicap," said Michael Ashley Schulman, CIO of Running

Point Capital, adding that any China sales would come as an

upside surprise.

The company reported $4.6 billion in first-quarter revenue

from H20 sales as customers stockpiled the chips before the

export controls set in, with the China business accounting for

12.5% of overall revenue.