Nvidia has experienced a significant decline in its stock value due to the export restrictions imposed by the US on China and Huawei’s increasing sales. The tightening of embargoes in the US with Donald Trump’s return to presidency has directly affected Nvidia’s operations in China. The company’s stock value has fallen by 35 percent since the peak of the year.
Nvidia shares continue to decline
Nvidia is among the leading companies in the global market with its artificial intelligence accelerators and graphics processors. However, we can say that it owes a significant part of this leadership to high sales in the Chinese market. Nvidia, which has reached an annual sales volume of approximately $30 billion in China in previous years, is currently only present in this market with special version products approved in the US.
Finally, the ban on the GeForce RTX 5090D model in China has made Nvidia’s operations in the region even more difficult. New Nvidia products, other than older generation accelerators such as the A100 and H100, cannot be accessed in the country.
This situation increases the advantage of the domestic manufacturer Huawei. Huawei has started to fill the gap in China with accelerators such as Ascend 910C, which offers similar performance to Nvidia H100, and Ascend 920, which was developed against H20.
Huawei solutions, which have become almost the only option for Chinese companies, directly affect Nvidia’s market share in the region. The company’s total market value has fallen below $2.3 trillion. This decline in shares has created serious anxiety among investors.
It is eagerly awaited what strategy Nvidia will follow in the Chinese market in the near term. So what do you think about this issue? You can share your views with us in the comments section below.
