NVIDIA CEO Jensen Huang confirmed the company’s China AI accelerator market share fell to zero percent. This collapse stems directly from U.S. export restrictions. Two years ago, NVIDIA controlled over 90% of the Chinese AI chip market.
Huang addressed the Special Competitive Studies Project, calling the U.S. policy a strategic failure. He argued that conceding the Chinese market undermines American technology leadership. Local firms like Huawei are now filling the vacuum created by these restrictions.
This shift accelerates China’s development of a domestic semiconductor ecosystem. The trend creates a formidable long-term competitor for global tech firms. While global AI demand sustains NVIDIA’s current growth, the loss of China introduces significant long-term risk for ETF investors.