NVIDIA Loses Its 95% Market Share in China - It's 100% Out due to US Export Restrictions

Sunday, 19 October 2025 at 01:46

As per a new report, NVIDIA is out of one of its important markets - China. The giant of technology lost its entire share of the advanced chip market in China after holding a 95% dominance. This sharp decline follows strict US export restrictions that prevent the company from selling its most advanced chips to Chinese companies. The company's CEO, Jensen Juang, said during a recent event: "At the moment, we're 100 percent out of China".

NVIDIA Loses Its Entire Market Share in China

The US government has banned the export of NVIDIA's high-end chips to China since 2022. This includes the NVIDIA A100, NVIDIA H100, and NVIDIA H200. Although NVIDIA was allowed to sell a downgraded chip, the NVIDIA H20, the Chinese cyberspace regulator launched a security investigation. This discouraged local firms from buying it. As a result, the giant is now forced out of China's market.

"Jensen Huang, NVIDIA's CEO"

Jensen Huang, of course, criticizes the export restrictions, calling them a "mistake". He warned that cutting off China would push the market toward domestic competitors like Huawei Technologies. "What harms China could oftentimes also harm America, and even worse," he said. Huang emphasizes the importance of rethinking policies to maintain global leadership in technology.

A Brief Summary of The Situation

NVIDIA, once holding 95% of China’s advanced chip market, has now lost it entirely.
Reason: Strict U.S. export bans preventing sale of high-end AI chips (A100, H100, H200) to China.
CEO Jensen Huang confirmed: “We’re 100 percent out of China.”
The H20 “China-only” downgraded chip failed after a security probe by Chinese regulators discouraged buyers.
Result: NVIDIA is effectively locked out of one of its biggest markets.

Notes:

The loss could equal billions in revenue annually for NVIDIA.
China previously accounted for 20–25% of NVIDIA’s data center sales.
Export controls are part of U.S. efforts to limit China’s AI and military computing power.
AMD and Intel face similar restrictions, though less impactful due to lower AI market share.

The Restrictions May Strenght China's Local Industry

In fact, the restrictions could bounce back on the US. China is pushing local tech to reduce dependence on foreign chips. The domestic companies are investing heavily to develop their own AI chips. Huawei, for example, already introduced an advanced AI chip roadmap and new clustering methods to replace NVIDIA's products. Other tech giants like Alibaba Group Holding, Tencent Holdings, ByteDance, and Baidu are also pouring resources into this field.

NVIDIA's exec states that China has nearly 50% of the world's AI researchers. He warned that excluding the country from the US tech may slow down global AI progress. He also notes that China's strong work culture and deep talent will enable it to close the gap with the US quickly. As per Huan, China is only "nanoseconds behind" in chipmaking.