Nvidia(US:NVDA) Xin Lang Cai Jing·2025-10-17 20:22Core Viewpoint - The U.S. government's fluctuating chip export policies towards China have severely impacted NVIDIA's operations in the Chinese market, leading to a dramatic decline in market share from 95% to zero, as stated by CEO Jensen Huang [1][4][5]. Group 1: NVIDIA's Market Position - NVIDIA's market share in advanced chips in China has plummeted to zero, with the company fully exiting the Chinese market [4][5]. - The company has adjusted its forecasts, assuming that its business in China will contribute nothing, with any future developments seen as a bonus [4][5]. - In 2024, NVIDIA's H20 series chip shipments in China are estimated to be around 600,000 to 800,000 units, indicating a significant presence despite the challenges [5]. Group 2: U.S. Export Policies and Implications - The U.S. government has implemented strict export controls since 2022, prohibiting NVIDIA from exporting high-end GPUs to China, which has led to a continuous decline in revenue from the region [5][6]. - Huang emphasized the need for a nuanced strategy from U.S. policymakers to balance maintaining technological leadership while ensuring global reliance on U.S. technology [4][6]. Group 3: Competitive Landscape - Chinese companies like Huawei are rapidly advancing in AI technology, with Huawei's next-generation chips designed to challenge NVIDIA's dominance [8][9]. - Huang noted that the Chinese AI market is projected to reach $50 billion by 2026, presenting significant opportunities for NVIDIA if it can navigate the current restrictions [9]. Group 4: Future Outlook and Strategy - NVIDIA continues to invest heavily in China, maintaining a large engineering team to support local tech companies in adapting to compliant models [10]. - Huang has called for the U.S. government to allow American tech firms to compete in markets like China to enhance U.S. influence [10].