NVIDIA CEO Jensen Huang Reveals Dramatic Drop in China Market Share

NVIDIA CEO Jensen Huang has recently reflected on the company’s dwindling presence in the Chinese AI market, revealing a stunning statistic: the company’s market share has plummeted from an impressive 95% to a shocking 0%. This dramatic decline comes as a result of a combination of geopolitical tensions and China’s growing ambitions to develop its own domestic AI technology stack.

Huang’s comments at the Citadel Securities Future of Global Markets 2025 event shed light on how NVIDIA is struggling to maintain its position in one of the world’s largest AI markets.

“At the moment, we are 100% out of China, and so China is 0%,” Huang stated, emphasizing the firm’s exit from the region. “We went from a 95% market share to 0%, and I can’t imagine any policymaker thinking this is a good idea. In all our forecasts, we assume zero for China. If anything happens in China, it will be a bonus.” Huang’s remarks underscore the significant loss of business NVIDIA has experienced in China, which has been a critical hub for the company’s AI development efforts. However, the situation isn’t just about market share. It is also indicative of a larger shift in global AI technology development.

The ongoing geopolitical tensions between the United States and China have escalated, making it increasingly difficult for American tech companies like NVIDIA to operate in China. As the Chinese government pursues an aggressive strategy to reduce its reliance on foreign technology, domestic companies such as Huawei and Cambricon are becoming formidable competitors to NVIDIA. These companies are not just entering the market but actively developing their own AI chips, further complicating NVIDIA’s prospects for re-entering the region. Huawei, in particular, has announced plans to develop its own advanced AI chips, challenging NVIDIA’s dominance in the sector.

This competitive landscape is further complicated by regulatory hurdles. NVIDIA’s ability to re-enter China hinges on approval from both U.S. and Chinese regulators, a process that has proven to be difficult amid the current political climate. Huang has previously suggested that NVIDIA’s next move in China could involve releasing a Blackwell-based chip, likely the B40. However, restrictions imposed by the U.S. government, specifically under the Trump administration, make it nearly impossible for NVIDIA to deliver such powerful solutions to China. This leaves the company in a difficult position, as it can only offer chips from the Hopper generation and below, which are far less competitive in the face of China’s growing AI capabilities.

Despite these challenges, the real concern for NVIDIA is the long-term viability of its operations in China. As the company’s market share in China continues to erode, the prospect of a recovery seems uncertain. The Chinese government’s focus on self-sufficiency in AI technology and the increasing strength of local competitors suggest that NVIDIA’s position in the country may not improve anytime soon. While Huang’s statement reflects a deep sense of disappointment, it also indicates the shifting dynamics of the global AI market and the growing influence of Chinese tech companies. With NVIDIA’s current strategy relying on foreign markets for growth, the company’s future in China remains in limbo, awaiting resolution through diplomacy or significant changes in the political landscape.

Ultimately, NVIDIA’s experience in China highlights the complexities of the global tech industry, where market forces and political realities can shape a company’s prospects in unforeseen ways. The loss of access to one of the world’s largest AI markets is a blow to NVIDIA, but it also serves as a reminder of the volatility of international business in today’s highly charged geopolitical climate.