Nvidia China Market Share Plunges from 95% to Zero Amid US Export Controls

Nvidia Completely Exits China Market

Nvidia CEO Jensen Huang revealed at the Citadel Securities Future of Global Markets 2025 event that the company's market share in China has collapsed from roughly 95% to zero due to US export controls. The dramatic decline represents one of the most significant corporate retreats in recent technology history, with far-reaching implications for both American and Chinese technology sectors.

The Complete Reversal

Speaking at the October 6 event in New York, Huang stated "At the moment, we are 100% out of China," emphasizing the company went from 95% market share to 0%. China previously represented 20% to 25% of Nvidia's data center revenue, a segment that generated over $41 billion in the company's most recent financial results, representing losses potentially worth billions annually.

US Export Restrictions Drive Collapse

Nvidia has been banned from exporting advanced chips that power AI applications, including the A100, H100, and H200, since 2022. Although the company obtained Washington's permit to sell the less powerful H20, China's cyberspace administration launched a security investigation, and Chinese clients were advised to shun the product.

In his forecasts, Huang indicated the company now assumes zero revenue from China and stated that any revenue from the region would be "a bonus".

Huang Criticizes Policy as "Mistake"

"I can't imagine any policymaker thinking that that's a good idea, that whatever policy we implemented caused America to lose one of the largest markets in the world," Huang said at the event.

Huang emphasized that Nvidia's exclusion from the Chinese market is bad for China and "worse" for the US. He warned that cutting off China would push the market toward domestic competitors like Huawei Technologies.

Rise of Chinese Competitors

Domestic companies are investing heavily to develop their own AI chips and manufacturing technologies. Huawei has already introduced an advanced AI chip roadmap and new clustering methods to replace Nvidia's products. Other tech giants like Alibaba Group, Tencent Holdings, ByteDance, and Baidu are also pouring resources into semiconductor research and development.

Huang highlighted that China has nearly 50% of the world's AI researchers and warned that excluding the country from US technology could slow down global AI progress.

Broader Implications

The Nvidia situation reflects the intensifying technology divide between the US and China. Beijing has reportedly instructed major firms including ByteDance and Alibaba to stop ordering Nvidia's AI chips, even those specifically designed to comply with export rules. This coordinated effort signals China's determination to accelerate domestic chip development and reduce reliance on American technology.