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Nvidia (NVDA, Financials) is ending its Hopper AI chip series in China, with CEO Jensen Huang confirming the company will no longer modify the architecture to comply with U.S. export limits. A new downgraded chip is in the works as Nvidia seeks to retain footing in a critical growth market.
Revenue from China totaled $17 billion in the fiscal year ending January 26, 2025, representing 13% of Nvidia's total sales. The H20 chip was the only remaining product in the Hopper series legally permitted for export to China under U.S. rules.
Huang confirmed in a livestream that no further Hopper updates are possible, stating, It's not Hopper because it's not possible to modify Hopper anymore, according to Taiwan's Formosa TV.
The company is expected to release a downgraded H20 chip within two months, according to earlier reports from Reuters, to help regain lost market share from competitors like Huawei.
The Biden administration's Framework for Artificial Intelligence Diffusion, issued in January 2025, imposed new export restrictions, which have been criticized by Huang. He argued that the U.S. should focus on maximizing the global reach of its technologies rather than restricting exports.
President Donald Trump has pledged to revoke those rules, calling them counterproductive to U.S. interests in global tech leadership.
Huang visited China shortly after the H20 restrictions took effect, signaling Nvidia's ongoing commitment to the region despite tightened rules.
This article first appeared on GuruFocus.