Jensen Huang isn't giving up on China. Nvidia's CEO confirmed on May 23 that the company sees China as a long-term opportunity within a projected $200 billion CPU and data center market.
That's a bold stance for a company that has 'largely conceded' the advanced AI chip sector in China to domestic competitors like Huawei. But Huang is playing the long game, and his recent trip to Beijing with President Trump's delegation in mid-May suggests he's betting on diplomacy as much as silicon.
The $200 billion bet and the 40% problem
China represents nearly 40% of the global technology industry, according to Huang. US export controls have severely limited what Nvidia can sell there. The company continues to ship the H200, a lower-performance chip designed to comply with regulations, but flagship AI accelerators are off limits for Chinese buyers.
Trump's delegation and the diplomatic angle
Huang's participation in President Trump's China delegation wasn't just a photo op. 'The market will open over time,' he said, expressing optimism about the trajectory of US-China trade relations.
What this means for investors
For investors, Nvidia's near-term China revenue is structurally impaired. A market representing nearly 40% of global tech spending is not priced into a stock at zero forever. Any credible path to re-entry would likely trigger a significant re-rating of Nvidia's long-term revenue potential.