Nvidia Sees Limited Gains from China Despite Regaining Foothold

Nvidia is one of the biggest success stories in the artificial intelligence boom. The company has seen spectacular gains and left investors searching for the next big thing. But despite its impressive growth, Nvidia still has room to expand.

The biggest hurdle in that growth story is China. The country was once a significant market for Nvidia, contributing over 20% of its data center revenue. However, escalating US export restrictions and China's push to build domestic technology have cost the company billions in revenue and lost it much of its advanced AI chip market share there.

Recently, Nvidia appeared to be getting a small opening back into China with Chinese tech giants ByteDance and Tencent beginning to receive Nvidia's H200 AI chips. However, Wedbush analyst Matt Bryson believes this development will only provide a 'minimal' boost to Nvidia's China revenue for the foreseeable future.