Nvidia Could Cement China Lead with Local AI R&D

Moz Farooque

Fri, May 16, 2025, 6:01 AM 1 min read

Nvidia (NASDAQ:NVDA) is deepening its China commitment with plans to unfastened a caller AI probe halfway successful Shanghai to enactment up income and antagonistic section rivals, according to the Financial Times.

The halfway comes arsenic China accounted for 14% of Nvidia's revenueabout $17 billionin fiscal 2024, and Jensen Huang estimates that could swell to $50 cardinal wrong a fewer years.

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Nvidia's China income person been dented by U.S. export curbs and Trump-era tariffs, and the institution is nether unit from Huawei's spot push, truthful the caller installation aims to code analyzable method requirements nether White House restrictions portion keeping spot plan and accumulation offshore to support intelligence property.

Beyond China-specific R&D, the Shanghai hub volition optimize existing products and research adjacent markets similar autonomous driving, portion tapping elite Chinese AI endowment to fortify its competitory moat.

The FT reports that section authorities person fixed preliminary enactment and that Nvidia has lobbied Washington for export-license approval. President Trump himself praised Huang connected a caller overseas trip, noting Nvidia's estimated 99% marketplace stock successful precocious AI chips.

Why It Matters: China remains Nvidia's second-largest marketplace aft the U.S., and capturing a bigger portion done localized innovation could thrust outsized growthespecially arsenic endeavor AI workloads expand.

This nonfiction archetypal appeared connected GuruFocus.