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On June 3, the Wall Street Journal reported that despite facing U.S. export restrictions on selling AI chips to China, NVIDIA remains steadfast in its commitment to the Chinese market due to the prohibitive costs of abandoning it. In its first-quarter financial report, NVIDIA issued a stark warning to the Trump administration: excluding U.S. chip companies from the burgeoning Chinese AI market would entail severe repercussions. The Chinese market holds pivotal importance for NVIDIA, ranking as its fourth-largest globally and consistently achieving growth rates exceeding 60%. Moreover, the rapid expansion of China's AI industry has fueled a surging demand for computational power, presenting NVIDIA with immense business prospects. Should NVIDIA exit the Chinese market, it risks ceding this vast territory to formidable competitors like Huawei.
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