Nvidia unabashedly eyes Rp3.5tn chip market despite China rejection
CEO Jensen Huang of Nvidia has affirmed that China remains part of the company’s projected $200 billion CPU market, equivalent to approximately Rp3.5 trillion. The statement underscores Nvidia’s continued view of China as a strategic long-term market despite ongoing US-China technological tensions.
Huang made the remarks upon arriving in Taipei on Saturday, 23 May 2026, ahead of next month’s Computex technology exhibition. When asked if the $200 billion CPU market projection includes China, Huang replied succinctly, ‘I think so.’
The comments come as Nvidia expands its business focus from graphics processing units (GPUs) to the CPU market, driven by growing demand for agentic AI systems capable of autonomous operations.
Earlier this week, during the company’s earnings presentation, Huang stated that Nvidia’s new Vera processor opens up a $200 billion new market. The firm also believes the new product line will support aggressive growth and drive sales of its flagship AI chips beyond the $1 trillion projection.
However, Nvidia’s access to the Chinese market remains challenging. Although the company has obtained a US government licence to sell the H200 AI chip, it has yet to secure approval from Chinese authorities, who are accelerating domestic chip industry development.
Previously, Nvidia appeared resigned to its uncertain fate in China. Huang said the company had lost ground in China’s AI chip market to local giant Huawei.
This situation stems from US export restrictions on AI chips to China, which instead of weakening China’s position, has motivated domestic players like Huawei to develop AI chips independently.
Huang has repeatedly highlighted the risk of China’s advancements threatening US dominance in chip and AI development. Despite recent signs of softening from former US President Donald Trump towards China, the progress of China’s chip industry under Xi Jinping appears increasingly independent of US technology.
China once contributed at least a fifth of Nvidia’s data centre revenue. However, the company has effectively been sidelined from the market after the Trump administration informed Nvidia in April that licences were required to export chips to China and other nations.
In an interview with CNBC International, Huang expressed caution regarding the prospects of reopening the Chinese market in the near term, telling investors to ‘expect nothing’ regarding approval to sell advanced chips there.
‘I have no expectations. That’s why we communicate all guidance, figures, and expectations to our analysts and investors to expect nothing,’ Huang said.