NVIDIA CEO Jensen Huang revealed the company’s market share in China has collapsed from 95% to zero due to U.S. export restrictions, calling it a policy mistake that could hand one of the world’s largest AI markets to domestic Chinese rivals like Huawei and Cambricon.
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NVIDIA’s China Market Collapse: Key Facts
| Aspect | Details |
|---|---|
| Previous Market Share | 95% |
| Current Market Share | 0% |
| Previous Revenue Impact | 20-25% of data center revenue ($41B segment) |
| Banned Products | A100, H100, H200, H20 chips |
| Export Ban Started | October 2022 |
| Current Forecast | Zero revenue assumed from China |
| China’s Global Position | 2nd largest computer market, 50% of AI researchers |
“I Can’t Imagine Any Policymaker Thinking That’s a Good Idea”
Speaking at Citadel Securities’ Future of Global Markets 2025 event, Huang stated: “We went from 95% market share to 0%. I can’t imagine any policymaker thinking that’s a good idea—that whatever policy we implemented caused America to lose one of the largest markets in the world to zero.”
China previously represented between 20% and 25% of NVIDIA’s data center revenue—a segment that generated over $41 billion in recent financial results, making this loss particularly significant for shareholders.
The Export Restrictions Timeline
NVIDIA has been banned from exporting advanced chips that power AI applications, including the A100, H100, and H200, since 2022. The company designed China-specific chips like the A800, H800, and H20 to comply with restrictions, but Chinese regulators launched investigations citing security concerns and advised clients to avoid these watered-down products.
Chinese authorities now claim domestic firms like Huawei Technologies and Cambricon offer comparable performance to NVIDIA’s restricted chips, accelerating China’s self-sufficiency drive.
Why Huang Says This Hurts America More
Huang emphasized that China has about 50% of the world’s AI researchers, stating “I think it’s a mistake to not have those researchers build AI on American technology.” He warned that excluding NVIDIA from China benefits Chinese competitors while threatening U.S. tech leadership.
NVIDIA’s financial forecasts now assume zero revenue from China. “If anything happens in China—which I hope it will—it’ll be a bonus,” Huang told investors, though he remains hopeful for policy changes.
The trade war’s ripple effects extend beyond NVIDIA—Micron Technology recently exited China’s data center market after a 2023 ban crippled sales. For the latest updates on tech trade policies and their impact, check out our technology coverage.
FAQs
Why did NVIDIA lose its China market share?
U.S. export restrictions since 2022 banned NVIDIA from selling advanced AI chips to China.
How much revenue did NVIDIA lose from China?
China represented 20-25% of NVIDIA’s data center revenue, a segment generating over $41 billion.
