Nvidia’s China Collapse: CEO Jensen Huang Laments Market Share Crash from 95% to Zero

Image Source: Times Of India

Nvidia CEO Jensen Huang has confirmed that the company’s market share in China’s advanced AI chip sector has plummeted from 95% to zero. The dramatic fall stems from strict U.S. export controls and China’s push for domestic alternatives, leaving Nvidia completely barred from selling its flagship chips in the region.

Nvidia’s China Market Vanishes: Export Curbs and Local Competition Erase 95% Share

In a startling admission at a Citadel Securities event in New York, Nvidia CEO Jensen Huang revealed that the company’s market share in China’s advanced AI chip segment has dropped from 95% to zero. The collapse follows sweeping U.S. export restrictions and China’s accelerated push for semiconductor self-reliance.

Key Highlights from Huang’s Statement:

Complete Market Exit

Huang stated, “At the moment, we’re 100 percent out of China,” confirming that Nvidia is no longer able to sell its high-performance chips in the country.

Export Restrictions Trigger Collapse

The U.S. government has banned exports of Nvidia’s A100, H100, and H200 AI chips to China since 2022.

Although Nvidia introduced a downgraded version, the H20 chip, it failed to gain traction due to security investigations by Chinese regulators.

Impact on Global Strategy

Huang warned that the exclusion from China’s market not only affects Nvidia’s revenue but also harms innovation and competition, potentially ceding ground to local players like Huawei.

China’s Domestic Push

China has ramped up efforts to develop homegrown AI chips, with companies like Huawei and Alibaba investing heavily in alternatives.

The geopolitical tech divide is reshaping global supply chains and fragmenting the AI hardware ecosystem.

Industry Reactions

Analysts suggest that Nvidia’s loss in China could be partially offset by demand in other regions, but the scale of the Chinese market makes the impact significant.

The situation underscores the risks of geopolitical entanglement in high-tech industries.

Future Outlook

Huang expressed hope for a policy shift, stating, “We will continue to explain and inform and hold on to hope for a change in policy”.

Nvidia’s dramatic fall in China serves as a cautionary tale about the intersection of technology, trade policy, and national security, with ripple effects likely to influence global chip strategies for years to come.

Sources: Gizmochina, Times of India, Mathrubhumi

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