During a recent interview, Nvidia CEO Jensen Huang stated that the company has 'largely conceded' the AI chip market in China to Huawei, highlighting the impact of U.S. export restrictions on advanced semiconductor sales. Nvidia reported an impressive 85% revenue increase, reaching $81.62 billion, and announced an $80 billion share buyback program alongside a dividend increase.
Despite this success, Huang noted that the Chinese market, which previously contributed at least 20% of Nvidia's data center revenue, has become largely inaccessible due to regulatory hurdles imposed by the U.S. government. He expressed a cautious outlook on the possibility of reopening the Chinese market, advising investors to 'expect nothing' in terms of approvals for advanced chip sales.
Huang emphasized Nvidia's long-standing presence in China and its desire to return if conditions improve. Additionally, he mentioned the company's aggressive expansion of its supply chain to capitalize on the growing AI economy, indicating that Nvidia is positioning itself for future growth despite current challenges in the Chinese market