"For years, China stood as a powerhouse market for ( NvidiaNASDAQ:NVDA), whose graphics processing units (GPUs) fuelled everything from gaming rigs to artificial intelligence (AI) supercomputers. In 2022, the region accounted for a staggering 26% of Nvidia's revenue, with sales soaring as Chinese tech giants snapped up chips to power their digital ambitions. But the U.S.-China trade war turned that golden era upside down ."
"Starting in late 2022, stringent U.S. export controls under the Biden administration banned Nvidia's most advanced AI chips like the H100 from being sold to China, citing national security risks over military applications. Its sales in the country cratered by an estimated 20% in fiscal 2023, forcing the company to redesign lower-powered alternatives just to stay in the game. Those tensions escalated further after President Trump came into office, and even Nvidia's dumbed-down AI accelerators developed specifically to comply with the export controls were banned."
Nvidia depended heavily on China, which generated roughly 26% of revenue in 2022 as domestic firms acquired GPUs for gaming and AI workloads. U.S. export controls from late 2022 barred high-end chips such as the H100 from being sold to China, and Nvidia's China sales fell about 20% in fiscal 2023. The company developed lower-powered, compliant models but those were later banned as well. A subsequent U.S. move granted limited export licenses with revenue-sharing, prompting China-specific rolls, yet Beijing urged firms to avoid Nvidia and a new report suggests China has again closed off a full return.
Read at 24/7 Wall St.
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