Nvidia’s stock fell over 5% after reporting a 24% drop in revenue from China. The company did not sell any H20 chips in the quarter due to regulatory issues. Despite this, CEO Jensen Huang sees the China market as a $50 billion opportunity this year. US-China tensions continue to impact Nvidia’s business.

Chinese chipmakers like Cambricon are benefiting from the situation, with the Semiconductor Index hitting a record high. China’s State Council aims to boost AI chip production. Analysts remain bullish on Nvidia, viewing any stock decline as a buying opportunity. Nvidia remains the global leader in AI technology, with a market cap of $4.4 trillion.

The Chinese government’s support for local competitors poses a challenge for Nvidia. New guidelines aim to triple China’s AI processor output next year. Despite challenges, Wedbush Securities expects Nvidia’s valuation to reach $5 trillion by early 2026. Stay updated on the latest news with the SCMP app or website.

Read more at Yahoo Finance: Nvidia shares slip in after-hours trading as China market prospects remain uncertain