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International Business Times
International Business Times
Business

Nvidia's Long Term Outlook In China Will Depend On Its Ability To Compete With Local Alternatives

Issues affecting the sale of NVIDIA chips include Chinese officials pushing domestic companies to use Chinese AI chips made by companies like Huawei and Cambricon.

NVIDIA, the world's most valuable company by market cap, recently delivered an unprecedented quarterly revenue of $81.6 billion, an 85% year-over-year surge, surpassing Wall Street expectations. However, investors' response fell short, consolidating around a "Zero-China" revenue position.

The firm released its quarterly results after its CEO, Jensen Huang, joined President Donald Trump and other tech executives in the US-China summit in May. The sale of NVIDIA chips to China, announced at the summit, was seen as a new possibility to open the local market and bring significant revenue, but so far it has faced some issues.

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