Nvidia Concedes China AI Chip Market to Huawei Amid Export Controls

Nvidia CEO Jensen Huang announced the US chipmaker has "largely conceded" China's artificial intelligence chip market to Huawei following tighter US export controls that blocked advanced chip sales. The announcement came as Nvidia reported quarterly revenue of US$81.62 billion, representing an 85% increase from the prior year. Demand in China remains high, though Nvidia expects no near-term approvals to resume advanced chip sales. Historically, China represented at least one-fifth of Nvidia's data center revenue before the restrictions took effect.

US Export Controls and Policy Context

The US tightened export licensing rules in April, restricting Nvidia's ability to sell advanced chips to Chinese customers. These controls prompted Huang's acknowledgment that the company has effectively withdrawn from competing for China's AI chip market.

Financial Results and Shareholder Returns

Beyond the China market concession, Nvidia announced a US$80 billion share buyback program and approved a higher dividend for shareholders, reflecting the company's strong financial position despite the regional market constraints.

H200 Chip Approvals in China

According to Reuters, Alibaba, Tencent, ByteDance, and JD.com received approval to purchase H200 chips, marking a limited pathway for advanced chip sales to major Chinese technology firms under the revised export framework.