Nvidia’s China business suffered in the third quarter, with only $50 million in sales of H20 chips due to geopolitical issues and competition. Revenue from China was $2.8 billion, far below Wall Street’s $8.4 billion projection. The company’s China revenue dropped from 13% to 5% of overall sales. Nvidia was banned from selling H20 chips to China, resulting in a $2.5 billion revenue loss in the first quarter. Despite efforts to secure export licenses, China banned its tech firms from buying Nvidia’s chips. Chinese rivals like Huawei and Alibaba introduced new AI chips challenging Nvidia’s dominance. The US-China trade war escalated with tariffs exceeding 130%, impacting Nvidia’s business. Nvidia’s CEO emphasized the importance of the Chinese AI market, valued at $50 billion. The company expanded its reach to other countries as the market for “sovereign AI” grows. The US approved a deal for Nvidia to sell advanced AI servers to the UAE.

Read more at Yahoo Finance: Nvidia ‘disappointed’ as China business falls flat amid geopolitical turmoil