Nvidia (NVDA) has emerged as a dominant force in the semiconductor industry, riding the wave of booming demand for artificial intelligence (AI) applications. Its advanced GPUs have become the backbone of modern AI systems, enabling cutting-edge technologies across industries. This explosive growth has propelled Nvidia to unprecedented heights, allowing it to reach a $3.3 trillion market capitalization in 2024.
However, Nvidia’s meteoric rise is unfolding against the backdrop of the ongoing U.S.-China chip war. In recent years, Washington has enforced stringent export controls on Nvidia’s most advanced chips, such as the A100 and H100, to limit China’s access to cutting-edge AI hardware. These regulations forced Nvidia to develop downgraded versions of its chips for the Chinese market to comply with U.S. requirements, significantly affecting its sales in one of the largest markets for AI chips.
