Nvidia has yet to generate any revenue from its advanced H200 chips in China, despite some US government approvals. This update comes from Chief Financial Officer Colette M. Kress, nearly five months after CEO Jensen Huang stated Nvidia's market share in China had fallen from 95% to zero. Kress expressed uncertainty about future imports, highlighting the ongoing challenges faced by the chip giant in one of its most important markets.
Export Controls Squeeze Market Share
In October 2025, Nvidia CEO Jensen Huang publicly lamented the company's dramatic decline in China's advanced AI accelerator market. Speaking at a Citadel Securities event, Huang announced that Nvidia's market share had plummeted from an estimated 95% to essentially zero. "At the moment, we are 100% out of China," Huang stated, attributing the collapse directly to US export controls.[tomshardware+5]
Huang called the outcome a "mistake" that ultimately harms American interests. He pointed out that China previously accounted for a significant portion of Nvidia's data center revenue, contributing between 20% and 25%.Following the restrictions, Nvidia began to assume no revenue from China in its financial forecasts.The US government's measures aimed to limit China's access to advanced artificial intelligence chips, impacting Nvidia's ability to sell its high-performance GPUs like the A800 and H800.[tomshardware+3]
Stalled Sales and Rising Competition
Fast forward to February 2026, and the situation remains dire for Nvidia's China business. During a recent earnings call, CFO Colette M. Kress provided a sobering update. She confirmed that while the US government approved "small amounts" of H200 semiconductor products for China-based customers, Nvidia has "yet to generate any revenue" from these sales.This indicates a persistent barrier to market access, even with some regulatory flexibility.[timesofindia+4]
Kress underscored the deep uncertainty surrounding Nvidia's future in the Chinese market. She explicitly stated, "We do not know whether any imports will be allowed into China."This uncertainty stems not only from US export regulations but also from the Chinese government's own actions. Reports suggest that Beijing has been deliberating on imposing its own import restrictions, aiming to encourage domestic companies to purchase chips from local suppliers instead.This dual layer of governmental scrutiny creates a complex and unpredictable environment for foreign chipmakers.[timesofindia+2]
The competitive landscape in China is also intensifying. Kress warned investors that Chinese competitors, "bolstered by recent IPOs," are making rapid progress. She cautioned that these rivals "have the potential to disrupt the structure of the global AI industry over the long-term."This growing domestic capability in China presents a significant challenge to Nvidia's long-term dominance in AI technology.[timesofindia+3]
Navigating a Complex Market
The current challenges are not entirely new for Nvidia. The company previously attempted to navigate export restrictions by developing specialized chips like the H20, designed to comply with earlier US government limitations. In July 2025, CEO Jensen Huang announced plans to resume H20 chip sales to China, stating that the US government had approved the necessary licenses.However, this brief window of opportunity quickly closed. New US restrictions targeting the H20 chip were implemented in April 2025, leading to an estimated $5.5 billion in charges for Nvidia related to this product line.This illustrates the dynamic and often unpredictable nature of the US-China technology trade relationship.[traxtech+3]
In light of these ongoing difficulties, Kress reiterated Nvidia's broader appeal to policymakers. She urged the US government to encourage all developers and businesses, including those in China, to utilize American technology.This stance reflects Nvidia's belief that open engagement is crucial for maintaining America's leadership in the global AI industry.[timesofindia+2]
For its first-quarter 2026 financial outlook, Nvidia's revenue projections do not include any expected data center compute revenue from China.This conservative approach underscores the significant impact of the trade restrictions and the prevailing uncertainty. The company continues to face a difficult balancing act, striving to maintain its global leadership while navigating a fragmented and heavily regulated international market. The future of Nvidia's presence in China remains largely dependent on evolving geopolitical dynamics and complex policy decisions from both Washington and Beijing.[news+1]
