Nvidia's Market Share in China Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Market Share Collapse: Nvidia's market share in China has plummeted from over 90% to zero, reflecting the impact of U.S. export restrictions and Chinese regulatory pressures, which have nearly halted the company's operations in this critical market, significantly affecting its revenue potential.
- Strong Financial Performance: Despite challenges in the Chinese market, Nvidia reported a 65% year-over-year revenue increase to $215.9 billion for fiscal year 2026, showcasing its robust performance in the U.S. market, particularly in the AI chip sector where it maintains a dominant position.
- Optimistic Future Outlook: Nvidia projects $78 billion in revenue for the first quarter of fiscal year 2027, even without contributions from China, representing a nearly 77% year-over-year increase, indicating the company's sustained growth potential in global markets.
- Intensifying Competition: With local chipmakers like Huawei rising to prominence, Nvidia faces an increasingly challenging competitive landscape in China, especially as Huawei has emerged as a market leader, which may pose significant challenges for Nvidia's future recovery in the region.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
Current: 211.500
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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