Quick Read – Nvidia (NVDA) saw China revenue collapse from 20% of data center sales to low single digits after U.S. export restrictions on advanced AI chips beginning in 2022, while the company’s overall revenue surged 126% in fiscal 2024 to $60.9 billion driven by demand from…
S. hyperscalers like Microsoft (MSFT), Amazon (AMZN), and Meta (META). Huawei Technologies emerged as the biggest beneficiary of the restrictions, with its Ascend AI chips powering domestic workloads as China’s AI chip self-sufficiency ratio reached 41% this year and is expected to hit 85% by 2028. – Washington’s export controls intended to slow China’s technological progress instead accelerated its semiconductor independence, leaving Nvidia with permanently reduced leverage in a market that can now source 70-85% of AI chip demand domestically. – The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
Get them here FREE. For years, Nvidia (NASDAQ:NVDA) treated China as one of its most important growth engines. At one point, the country accounted for roughly 20% of Nvidia’s data center revenue.
Then geopolitics stepped in. First under the Biden administration, and later under President Trump, Washington tightened restrictions on exporting advanced AI chips to China. The goal was straightforward: slow China’s technological progress.