Nvidia may still want China… but China may no longer be waiting.
In a CNBC interview, CEO Jensen Huang said US export controls have pushed Chinese AI companies toward domestic alternatives, with Huawei moving into the space Nvidia once dominated. He framed that shift as a direct consequence of Washington’s chip limits, which have left Chinese firms looking for suppliers closer to home.
“We’ve really largely conceded that market to them,” Huang told CNBC.
For Nvidia, the concern goes beyond immediate revenue. AI dominance depends as much on software ecosystems and developers as hardware, meaning that every customer that shifts toward Huawei-backed infrastructure could make China’s return to Nvidia less certain, despite the recent easing of restrictions.
Caught in a crossfire between two heavyweights
Nvidia is currently the world’s most valuable company, with the US as its largest market.
However, in his CNBC interview, Huang noted that Nvidia still has its sights on China, despite geopolitical tensions that have diminished its 30-year presence there. He said that “demand in China is quite large,” emphasizing the vast opportunities it could get if it reacquires its position as China’s major supplier.
Corroborating Huang’s statement that China has strong chip demand, the US Bureau of Industry and Security has recently cracked down on several operations smuggling Nvidia’s advanced chips to China via intermediary countries.
But two major issues still stand in its way: the unresolved US-China trade dispute and Huawei’s rapid expansion into Nvidia’s shoes.
After US restrictions limited Nvidia’s sales in China, Chinese firms accelerated development of domestic alternatives, with Huawei leading the charge. Huang said Huawei is “doing pretty well” and could have “an extraordinary year coming up” as local chipmakers fill the gap left by Nvidia.
Huawei’s growing dominance as the go-to chip company for Chinese firms is likely part of why exports of the recently approved H200 chips to China have stalled. It shows that the US restrictions have forced China to become self-reliant on its own technology, a move aimed at controlling its entire AI ecosystem.
What are Nvidia’s expectations given the current happenings?
Based on Huang’s statements, the company appears eager to reenter the Chinese market fully but remains cautious.
Even with China out of the picture, the company’s operations remain strong, with revenue recently increasing 85% and exceeding expectations. That translates to $81.62 billion, up from $44.06 billion in its last fiscal year.
Huang has advised investors to expect nothing, suggesting that things may not turn out as they want. That, too, comes after Huang’s recent trip to China with US President Donald Trump and others, which CNBC says hasn’t given any hint of whether China will open its market to Nvidia’s H200 chips.
Still, the CEO’s expectations haven’t diminished, which suggests he could keep pushing behind the scenes while urging investors to remain neutral until the friction ceases, if and when it does.
Related: Nvidia’s GTC 2026 announcements offered a broader look at the company’s AI roadmap, from new hardware to software updates.