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Nvidia (NVDA) CEO Jensen Huang said the company’s market share in China has dropped to zero. Huang made the comment during an interview on an episode of the Special Competitive Studies Project’s Memos to the President on April 30.

“Nvidia had, you know, call it 90-some odd percent of the world’s market share,” Huang said in the interview. “Today, in China, we have now dropped to zero.”

The US has vacillated between allowing Nvidia and rival AMD (AMD) to ship chips to China and prohibiting the sale of their high-powered processors to the country. More recently, President Trump said he would allow certain shipments of Nvidia’s H200 chip, but Commerce Secretary Howard Lutnick said the company hasn’t sent any to the country yet.

Skeptics of allowing sales to China say the chips will inevitably help the country’s military develop and run AI software that could be used against the US.

But Huang and others in favor of selling chips to China argue that it’s better to have the country rely on US-made chips. Cutting China off, opponents say, only incentivizes the country to build its own competing AI processors.

“Conceding an entire market the size of China probably doesn’t make a lot of strategic sense,” Huang said during the interview.

“And so I think that that has already largely backfired,” he added. “Maybe it made sense at the time, but I think the policy really needs to be dynamic, and it needs to stay with the times.”

In its most recent quarter, Nvidia reported full fiscal-year revenue from China, including Hong Kong, of $19.67 billion. But the company said it didn’t anticipate any revenue from the company in its first quarter.

It also noted that while the government granted Nvidia a license to ship its H200 to China in February, the company hasn’t generated any revenue from sales into the country and doesn’t know if it will be granted an import license.

“As of the end of fiscal year 2026, we were effectively foreclosed from competing in China’s data center computing/compute market, and our effective foreclosure from the China market helped our competitors build larger developer and customer ecosystems to challenge us worldwide,” Nvidia said in its 10-K filing.

“Unless we are able to return with a product that meets the approval of both the [US government] and the Chinese government, our lost opportunity and the benefit to our competitors will have a material and adverse impact on our business, operating results, and financial condition,” the company said.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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