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Nvidia
’s latest earnings again highlighted its extraordinary success and undeniable market power: $46.7 billion in revenue, up 56 percent from a year earlier, and net income of $26.4 billion. Its forecast for the next quarter came in at $54 billion, broadly in line with expectations. But one omission stood out — no revenue from its China-specific H20 chip. That absence spoke volumes. America’s most valuable semiconductor firm is struggling to maintain footing in China just as one of China’s own champions, Cambricon Technologies, is surging.
The problem for Nvidia is not with its business fundamentals, and certainly not with the performance of its chips, notwithstanding the “backdoor” allegations. Despite heavy losses tied to U.S. export restrictions, the company has thrived and is now racing to meet extraordinary demand for its new Blackwell Ultra platform for U.S. and allied data centers. There is no doubt that it can lead the global AI era without taking on the baggage that comes from its infatuation with China. Yet instead of drawing confidence from that strength, Nvidia has chosen to continue bending over backwards to appease China’s party-state, hoping to hold on to a shrinking slice of the Chinese market.
