Nvidia’s Strategic Comeback in China’s AI Chip Market
Nvidia, having faced restrictions in selling AI chips to China, has recently secured a deal with the U.S. government allowing it to resume these sales. This development follows a substantial $4.5 billion charge in Q1 2025 related to halted H20 chip sales, which represented approximately 13% of total sales for that fiscal year. The AI chip market in China, estimated to reach $50 billion annually, could yield Nvidia up to $99 billion in revenue over the next three years.
Additionally, Nvidia is reportedly developing a new AI chip, the B30A, which is expected to deliver half the computational power of its Blackwell B300 processor. This move comes after President Trump’s remarks about the possibility of authorizing a reduced-capacity chip, enhancing Nvidia’s prospects in what is considered a lucrative market for AI technologies. Wall Street forecasts Nvidia’s revenue to grow to $200 billion in fiscal 2026 and potentially $302 billion by fiscal 2028, reflecting the strategic importance of the Chinese market.
