China was supposed to be the next huge sales frontier for artificial intelligence (AI) chip giant Nvidia Corp. (NASDAQ: NVDA), the most valuable company in the world. China is racing to beat the United States in AI advances. One key question about that push is whether China can win without Nvidia’s advanced Blackwell chips. CEO Jensen Huang said that there were “no active discussions” with Chinese firms.
Huang has been battling to open China to his high-end chips. Instead, Nvidia has been caught in the U.S.-China trade war. The war is based in part on whether the Trump administration wants China to have access to America’s best AI hardware. One argument is that the Blackwell will help China beat the U.S. in the AI race.
Huang had said that sales in China could reach well into the billions of dollars. However, sales of Nvidia’s less powerful chips will not get it there. At one point, Huang said Nvidia did not expect any Chinese revenue to show up in quarterly financial results.
Huang told Reuters, “It’s up to China when they would like Nvidia products to go back to serve the Chinese market. I look forward to them changing their policy.” In terms of Nvidia’s short-term revenue, demand for its chips is so huge, it may not matter much. The pace of AI data center construction is extraordinary. And large tech companies like Microsoft and OpenAI appear to have limitless dollars. They have to jockey to buy Blackwell, for the time being. And the “time being” could last a long time.
Nvidia may never get much revenue from China. The country has been making its own chips and boasting about its AI programming prowess. It claims it can build world-class AI software without any hardware from the U.S. However, that is impossible to confirm.
For the time being, and perhaps forever, China is not budging. Neither is the Trump administration. So, Nvidia remains stuck.
Nvidia Stock Price Prediction and Forecast 2025–2030
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