Nvidia Largely Concedes China AI Chip Market to Huawei as H200 Blocked

As of May 21, Nvidia CEO Jensen Huang stated the company has largely conceded China’s AI-chip market to Huawei after Beijing blocked all H200 deliveries despite U.S. licenses granted to roughly 10 Chinese firms. The impasse followed Huang’s participation in the Trump-Xi summit, which produced no licensing breakthrough and prompted Alibaba to launch its Zhenwu M890 chip while accelerating domestic self-sufficiency. Nvidia continues to exclude China from its fiscal Q1 2027 revenue outlook of $78 billion, erasing a modeled $30 billion opportunity and driving shares down 4.4 percent ahead of the May 20 earnings release.