Nvidia says it has ‘largely conceded’ China’s AI chip market to Huawei

Nvidia CEO Jensen Huang acknowledged that the company has effectively surrendered a significant portion of China’s AI chip market to Huawei due to ongoing U.S. export controls on advanced semiconductor technology.

The remarks came alongside Nvidia’s strong quarterly performance, where the company posted an 85% year-over-year revenue increase, reaching $81.62 billion compared to $44.06 billion during the same period last year. Nvidia also announced an $80 billion stock buyback plan and increased its dividend payout.

Despite the impressive financial results, China continues to remain a major concern for the company. Speaking to CNBC, Huang noted that demand for AI technology in China remains extremely high and praised Huawei’s rapid growth and expanding chip ecosystem. He explained that local Chinese semiconductor companies have gained momentum largely because Nvidia has been forced to step back from the market.

Huang’s statements highlight the growing impact of U.S. restrictions on AI chip exports, which have accelerated China’s efforts to strengthen its domestic semiconductor industry and reduce reliance on foreign technology.

China previously contributed more than 20% of Nvidia’s data center business. However, the company’s operations in the region were significantly affected after the Trump administration introduced licensing requirements for exporting advanced chips to China and several other countries earlier this year.

During the CNBC interview, Huang expressed limited optimism regarding any immediate easing of export restrictions. He stated that Nvidia has advised investors not to expect approvals for advanced chip sales to China in the near future.

Even so, Huang emphasized that Nvidia remains interested in serving the Chinese market if regulations eventually change. He pointed out that the company has maintained partnerships and customers in China for over three decades.

Huang also recently attended President Donald Trump’s China summit, although the discussions provided little clarity on whether Nvidia’s H200 AI chips would receive approval for sales in China.

According to reports from Reuters, several major Chinese technology firms, including Alibaba, Tencent, ByteDance, and JD.com, were recently granted permission by the U.S. Commerce Department to purchase H200 chips.

However, U.S. officials clarified that semiconductor export controls were not a central topic during recent trade discussions with China, suggesting that major policy changes may still be far away.

At the same time, Nvidia is aggressively expanding its supply chain to meet rising global demand for AI technologies. Huang described the AI sector as a rapidly growing opportunity spanning multiple layers, including energy, semiconductors, infrastructure, AI models, and applications.

He added that Nvidia is prioritizing investments in suppliers and manufacturing partners to ensure the company can continue scaling operations as demand for AI solutions accelerates worldwide.

Voice Of Osiz

Osiz Technologies views Nvidia’s acknowledgment of losing significant ground in China’s AI chip market to Huawei as a major shift in the global AI semiconductor landscape. The development highlights how geopolitical policies and export restrictions are reshaping the competitive dynamics of the AI infrastructure industry. Huawei’s rapid progress demonstrates the growing capability of regional technology companies to build independent AI ecosystems and reduce reliance on foreign chip providers. As AI adoption accelerates worldwide, demand for localized AI hardware, cloud infrastructure, and enterprise AI solutions is expected to rise significantly. This transition could also encourage stronger innovation across AI development, edge computing, and high-performance data center technologies. At Osiz, we believe the evolving AI hardware market will create new opportunities for businesses investing in AI applications, automation platforms, and scalable digital transformation strategies. Companies that adapt quickly to these technological and geopolitical changes will be better positioned in the next phase of the global AI race.

Source: Cnbc.com