NVIDIA has 'conceded' China's AI chip market to Huawei: Huang
What's the story
NVIDIA CEO Jensen Huang has admitted that the company has "largely conceded" China's artificial intelligence (AI) chip market to Huawei. His remarks come as NVIDIA posted another record quarter, with an 85% revenue surge over last year. The company's expansion plans are also hampered by US export restrictions on advanced AI chips, which have accelerated China's efforts toward semiconductor self-sufficiency.
Market challenges
China once accounted for 20% of NVIDIA's data center revenue
Once, China accounted for at least one-fifth of NVIDIA's data center revenue. However, the company has been effectively shut out of this lucrative market after being told by the Trump administration in April that it would need a license to export chips to China and other select countries. Huang was cautious about any near-term reopening of the Chinese market but expressed eagerness to return if conditions improve.
Strategic growth
Huang optimistic about AI growth potential
Despite the challenges, Huang said NVIDIA is aggressively expanding its supply chain for what he called a massive growing opportunity tied to the broader AI economy. He said the idea of a "many times larger company is not out of the question," adding that NVIDIA was investing heavily across what he termed as the AI industry's "five-layer cake." This includes energy, chips, infrastructure, models and applications.