Nvidia CEO Jensen Huang said the company’s share of China’s AI chip market dropped from about 95% to zero. He made the comments at a Citadel Securities event in New York on October 6. US export controls are the reason for the fall. Nvidia now plans for no China revenue in its forecasts.
Export Controls Reshape Market Position
According to Tom’s Hardware, Huang said at the event, „At the moment, we are 100% out of China.“ He added, „We went from 95% market share to 0%.“ The comment marks the first time Nvidia has publicly put a number on its retreat from China.
The remarks focus on Nvidia’s data center GPU line. Export restrictions have affected these chips since October 2022. The company’s China-focused A800 and H800 parts became blocked by export prohibitions in 2023. A newer design, the H20, has also faced licensing hurdles of its own.
Impact on Revenue and Forecasts
China represented between 20% and 25% of Nvidia’s data center revenue. That segment generated more than $41 billion in the most recent financial results. The figure represents a 56% year-over-year increase. AI infrastructure remains the company’s growth engine.
Huang criticized the outcome of the policy. „I can’t imagine any policymaker thinking that’s a good idea, that whatever policy we implemented caused America to lose one of the largest markets in the world to 0%,“ he said. He added that Nvidia assumes 0% for China in all forecasts. „If anything happens in China… it will be a bonus,“ he noted.
Future Outlook and Market Changes
The US government has tightened controls over AI accelerators sold to China. The goal is to limit Beijing’s access to cutting-edge semiconductors. But Huang’s comments show how quickly the situation has changed on the ground.
China’s hyperscalers and AI labs have turned to domestic silicon. They are also using alternative hardware in response to export curbs. This accelerates efforts to localize compute infrastructure. Huang flagged this trend earlier this year. He warned that blanket restrictions could spur the development of competitive substitutes.
While Huang said he hopes Nvidia’s business can return to China in the future, the company has written off the country for now. The prolonged clampdown could reshape both demand and supply chains across the industry.
