Nvidia Says $200 Billion CPU Market Opportunity Includes China Despite Ongoing Chip Restrictions
Nvidia CEO Jensen Huang said the company’s projected $200 billion market opportunity for central processing units (CPUs) includes China, signaling that the chipmaker continues to see significant long-term demand from one of the world’s largest technology markets despite ongoing trade and technology restrictions between Washington and Beijing.
Speaking to reporters in Taipei on Saturday, Huang was asked whether the $200 billion CPU market opportunity he outlined earlier this week included China. “I would think so,” Huang said while arriving in Taiwan ahead of the Computex technology trade show, according to Reuters.
The comments come as Nvidia seeks to expand beyond its dominance in graphics processing units (GPUs), which have become the backbone of artificial intelligence development. Demand for CPUs has gained renewed attention as businesses increasingly deploy agentic AI systems capable of carrying out autonomous tasks, broadening the hardware requirements needed to run advanced AI workloads, Reuters reported.
Huang told investors during Nvidia’s earnings call on Wednesday that the company’s new Vera CPU architecture opens access to a market worth approximately $200 billion. The executive also argued that Nvidia’s expanding product portfolio could help sustain growth beyond its flagship AI accelerators. Reuters noted that Huang has pointed to a broader customer base and new product categories as key growth drivers for the company.
The remarks arrive against the backdrop of continuing U.S.-China technology tensions, which have reshaped the global semiconductor industry. Export controls imposed by Washington in recent years have restricted the sale of advanced AI chips to Chinese customers, while Beijing has encouraged domestic companies to develop alternatives to foreign semiconductor technology.
Despite those restrictions, Nvidia has obtained U.S. licenses allowing it to sell its H200 AI chips to China. However, shipments remain stalled. Reuters reported earlier this month that around 10 Chinese companies received approval from U.S. authorities to purchase the H200, Nvidia’s second-most-powerful AI chip, though no deliveries had been completed.
“H200 has been licensed to ship to China. It would be terrific to be able to serve that market. The Chinese market is very important. It’s very large, of course,” Huang said in Taipei, according to Reuters.
The issue has become part of the broader geopolitical competition between the United States and China over advanced technologies, particularly artificial intelligence. Earlier this month, U.S. President Donald Trump and Chinese President Xi Jinping held talks in Beijing, but no immediate breakthrough emerged regarding Nvidia’s efforts to expand H200 sales in China, Reuters reported. Huang was part of the U.S. delegation during the visit.
Taiwan remains central to Nvidia’s manufacturing strategy. Huang said he plans to meet executives from TSMC, the world’s largest contract chipmaker and a critical supplier for Nvidia’s advanced processors. He also said Nvidia is increasing production of its Vera Rubin platform, which combines the company’s Vera CPU and Rubin GPU technologies, creating additional demand across Taiwan’s semiconductor supply chain, according to Reuters.
The comments came days after rival AMD announced plans to invest more than $10 billion in Taiwan’s AI sector to strengthen partnerships and expand manufacturing capabilities for advanced AI chips. The investment highlights growing competition among major U.S. chipmakers as they race to capture demand generated by the AI boom, according to The Wall Street Journal.
Huang also addressed concerns about chip diversion after Taiwanese prosecutors launched an investigation into three individuals suspected of illegally exporting AI servers containing Nvidia chips that are subject to U.S. export controls. The servers were reportedly manufactured by Super Micro Computer.
Nvidia is “very rigorous” in explaining laws and regulations to its partners and expects compliance with all applicable rules, Huang said, according to Reuters. He added that Super Micro is responsible for managing its own operations and regulatory compliance.
