Nvidia Corporation (NVDA) is a leading chip company that makes AI processors and systems used by cloud firms, data centers, and tech giants. CEO Jensen Huang said Nvidia still views China as part of its long-term growth plan, even as U.S. chip rules and local Chinese policy keep that market hard to serve.
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NVDS: built for a short position on NVDASpeaking in Taipei, Huang said his view of a $200 billion CPU market includes China. That is a key point for Nvidia, since the company is now pushing deeper into CPUs with its new Vera chips, not just the GPUs that made it the main name in AI chips.
On Nvidia’s recent earnings call, Huang said the Vera CPU line gives the company access to a new $200 billion market. When asked if that view includes China, he said, “I would think so.”
Meanwhile, despite the company’s latest earnings beat, NVDA shares dropped nearly 2% on Friday, closing at $215.33.
H200 Sales to China Remain Stuck
Still, China is not an easy market for Nvidia right now. The company has U.S. licenses to sell its H200 AI chips to China, but Chinese officials have not cleared those sales. Beijing is also trying to build up its own local chip firms.
Huang made clear that Nvidia still wants access to the market. “H200 has been licensed to ship to China. It would be terrific to serve that market. The Chinese market is very important. It’s very large, of course,” he said.
That puts Nvidia in a tricky spot. On the one hand, China could still be a large source of demand. On the other hand, the company must navigate U.S. export controls, Chinese review, and rising local rivals.
Vera Rubin Ramps Up in Taiwan
At the same time, Nvidia is moving ahead with its next major AI platform. Huang said the company is ramping up production of Vera Rubin, which joins Nvidia’s Vera CPUs with Rubin GPUs. He said this should make for “a very busy second half” for Taiwan’s supply chain.
That is also why Taiwan remains so vital for Nvidia. Huang said he would meet with Taiwan Semiconductor Manufacturing Company (TSM), which makes many of the advanced chips used in AI systems. He also said Nvidia has invested in and backed its Taiwan partners “far more” than $10 billion, though he did not announce a new plan.
For Nvidia, China remains part of the AI plan. However, the path to that market is still shaped by politics, trade rules, and local chip goals.
Is NVDA a Good Stock to Buy?
Turning to the Street, Nvidia Corporation has a Strong Buy consensus. based on 39 analysts’ ratings. The average NVDA price target is $301.32, implying about 40% upside from the current price.
