Caroline Hyde

The market reaction from your perspective.

Well, this is a win for Nvidia, but it has to be taken with a pinch of salt because we already hear that there are tensions among US politicians regarding what this means for the national security for US.

It is a very sensitive segment of business.

China is unsure to let its own companies buy these chips for the same national security issues and also because they are backing the domestic chip production.

So for Nvidia, which assumes that its China sales are now zero, every chip that's going to be sold to China is a bonus.

It is a tailwind.

But for long-term forecasts, we still remain very much cautious regarding what this means and how stable the sale is going to be.

Ipek, the base case assumption from NVIDIA is right now in the fiscal year and maybe next fiscal year, zero revenues from China.

But clearly this news has led everyone to recalculate.

Would you assume some upside from Chinese AI data center chip revenue next year?

Well, again, the geopolitical backdrop is so uncertain that the best thing to do in terms of the safest way to go with these assumptions is to keep that forecast at 0%.

But obviously, investors are happy to hear that there is an opportunity in China for Nvidia.

But again, that opportunity is very much uncertain right now.

We don't know if China is going to allow these chips to be sold.

And again, we don't even know if the Chinese companies

will be willing to buy these chips, given that it is politically very sensitive.

And if they could use domestic alternatives, even though they are less efficient, maybe it's going to be a better deal for them, especially from a political and geopolitical perspective.

So in my opinion, investors will continue to assume that the Chinese sales is the Nvidia's Chinese sales are going to be zero with a little bonus, maybe if some of these chips actually get sold.

Ipek, bring us your global perspective as you sit in Switzerland, this tussle between U.S.

and China to say who's got more dominance.