Nvidia's China Market Share Plummets to Zero; CEO Huang Awaits Trump's Decision on Blackwell Chips

Nvidia CEO Jensen Huang expressed his hope that the company's advanced Blackwell chips could eventually be sold in China, though he acknowledged the final decision rests with U.S. President Donald Trump. Speaking in South Korea, Huang emphasized the importance of the Chinese market for Nvidia and the broader U.S. technology sector, despite ongoing export restrictions. His comments follow a high-level meeting between President Trump and Chinese President Xi Jinping, where semiconductors were reportedly discussed.

U.S. export controls have severely impacted Nvidia's presence in China, with the company's market share in the country reportedly falling from 95% to zero. These restrictions aim to limit China's access to cutting-edge AI technology, particularly for applications that could benefit its military. Nvidia has previously developed less powerful, China-specific chips like the H20 to comply with regulations, but even these have faced resistance from Beijing.

President Trump confirmed that while he discussed semiconductors with President Xi, the most advanced Blackwell graphics processing units were explicitly "not talking about the Blackwell." Trump indicated that China would engage with Nvidia and other companies regarding chip acquisition, but without specifying the advanced Blackwell series. This clarifies the immediate future for Nvidia's flagship products in the Chinese market.

Huang has consistently argued against the national security concerns underpinning the export bans, stating that China possesses significant domestic AI chip capabilities and that collaboration benefits both nations. "It's in the best interest of America to serve that China market. It's in the best interest of China to have the American technology company bring technology to the China market," Huang said. He also cautioned against underestimating Chinese competitors like Huawei, which has developed its own advanced AI chips.

Despite Huang's advocacy for market access, China has reportedly discouraged purchases of Nvidia's H20 chips, instead promoting domestic manufacturers. This push for self-sufficiency further complicates Nvidia's efforts to regain a foothold in what was once a crucial market. Experts warn that continued restrictions could accelerate China's indigenous AI hardware development, potentially narrowing the U.S. lead in AI compute.