"China was supposed to be the next huge sales frontier for artificial intelligence (AI) chip giant Nvidia Corp. ( NASDAQ: NVDA), the most valuable company in the world. China is racing to beat the United States in AI advances. One key question about that push is whether China can win without Nvidia's advanced Blackwell chips. CEO Jensen Huang said that there were "no active discussions" with Chinese firms."
"Huang told Reuters, "It's up to China when they would like Nvidia products to go back to serve the Chinese market. I look forward to them changing their policy." In terms of Nvidia's short-term revenue, demand for its chips is so huge, it may not matter much. The pace of AI data center construction is extraordinary. And large tech companies like Microsoft and OpenAI appear to have limitless dollars."
Nvidia anticipated China as a major market for its advanced Blackwell AI chips, but U.S. export restrictions and policy choices have blocked those high-end sales. CEO Jensen Huang reported no active discussions with Chinese firms and stated China must change its policy before Nvidia products can return. Demand for Blackwell remains enormous among Western cloud and AI companies, supporting Nvidia's near-term revenue despite lost Chinese sales. China is developing domestic chips and claims it can build world-class AI software without U.S. hardware, a claim that is difficult to verify. The impasse may keep Nvidia's Chinese revenue low for the foreseeable future.
Read at 24/7 Wall St.
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