Nvidia: China Included in $200B CPU Market Forecast

Nvidia (NVDA) CEO Jensen Huang confirmed on Saturday that China is part of the company's $200 billion CPU market forecast, speaking to reporters in Taipei ahead of a major trade show. The statement comes amid ongoing US-China technology tensions.

Details of the Remarks

When asked whether China was included in the $200 billion market forecast he mentioned during Nvidia's earnings call on Wednesday, Huang replied: "I would think so. $200 billion is not today, it's someday. And it includes all the data centers, CPUs. This is a new market for us."

Huang noted that CPUs are becoming more important as companies move toward agentic AI, which can perform tasks more independently. This shift is expanding demand beyond GPUs, the chips Nvidia is best known for.

New Products and Challenges

Huang teased a new CPU called "Vera," calling it "really exciting" and promising more details next week. He expressed confidence that new products will help Nvidia exceed the $1 trillion sales forecast for its flagship AI chips.

However, Nvidia's H200 chip still faces hurdles in China. While the US government has granted licenses to sell its second-most powerful chip there, Chinese officials have not yet approved it as Beijing supports domestic chipmakers.

Geopolitical Context

Recent talks between US President Donald Trump and Chinese President Xi Jinping did not produce an immediate breakthrough. Despite this, Huang emphasized that the Chinese market "is very important. It's very large, of course."

What This Means for Investors

Huang's remarks suggest Nvidia sees long-term opportunities in China despite trade tensions, potentially easing investor concerns. However, the lack of Chinese approval for the H200 chip remains a near-term obstacle.