Nvidia CEO Jensen Huang emphasizes China market is crucial for global AI dominance

Feb 6, 2026, 5:53:01 PM UTC(4 hours ago)

Impact: Medium

Affected Assets

Huang's statement underscores the belief that conceding the Chinese market would weaken the US's overall competitive position in AI, allowing Chinese developers to innovate with fewer resources.
The company is actively navigating US export restrictions by developing specialized, less powerful chips like the H200, which still require US government approval for shipment to China.
Nvidia's strategy is to protect its market share against local rivals like Huawei, whose Ascend 910C chips are gaining traction in the absence of high-end Western alternatives.
The CEO recently visited Shanghai for annual celebrations with Nvidia's China employees, highlighting the market's importance despite regulatory headwinds and fierce local competition.
Analysts warn that long-term struggles in China could narrow Nvidia's global lead, as the Chinese commercial sector develops and utilizes domestic chips, potentially eroding the advantage of Nvidia's CUDA software platform.

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