Ouch, NVIDIA’s magnificent adventure in China is turning sour, mainly due to US sanctions that are putting the company in a delicate position. Sales are down and the situation is uncertain. The brand is no longer including the Middle Kingdom in its economic forecasts!
China: NVIDIA no longer includes the country in its economic forecasts!
Successive sanctions and hardening of US positions have forced NVIDIA to revise its forecasts several times. As time went by, the Chameleon, in order to continue exporting its hardware, had to offer ever more limited hardware, until today. Indeed, the RTX 5090D is now banned, as is the H20, which was previously compliant. In response, we have the B30, but this is much more limited than the brand’s first cards. All this means that Chinese companies are gradually managing to compete with the Chameleon’s export products. Huawei comes to mind in particular, whose hardware has at one time or another been used to train and/or run DeepSeek, ChatGPT’s notorious AI rival. Otherwise, of course, there’s AMD, which offers its RADEON Pro AI R9700, etc. The situation is therefore uncertain overall, especially as the company’s shares have collapsed in China in the space of a few years. In 2021, the brand will have a 90% market share, compared with the current 50%. Although the company still has a strong presence, there’s no denying that the fall is staggering. And as long as sanctions are in place and can, potentially, be tightened, the manufacturer no longer wants to include China in its economic forecasts, since the market there is uncertain. Even so, this hasn’t stopped the Chameleon from beating the previous period’s results quarter after quarter. Even if the situation in China becomes more complicated, the company remains in excellent economic health.
