China Bans Nvidia’s RTX 5090D V2, Risks $17 Billion China Sales
NVDA•China imposed a ban on Nvidia’s RTX 5090D V2 gaming chip during Jensen Huang’s Beijing visit, following earlier restrictions on H200 and H20 AI accelerators. Nvidia sold just over $17 billion in China in fiscal 2025, and Morgan Stanley projects the market to reach $67 billion by 2030, 86% domestic.
1. Beijing Visit and Product Ban
During Jensen Huang’s visit to Beijing, Chinese regulators banned the recently introduced RTX 5090D V2 gaming chip, which targeted Chinese gamers and AI developers cut off from advanced Nvidia products. This measure followed continued restrictions on the H200 and H20 AI accelerator chips, extending a pattern of product blocks.
2. Impact on China Sales and AI Market
In fiscal 2025, Nvidia sold just over $17 billion in products in China, predominantly from its H20 line. With Morgan Stanley projecting China’s AI chip market to reach $67 billion by 2030—86% from domestic suppliers—the ban could significantly curtail Nvidia’s growth in its second-largest market.
3. Domestic Competition Gains Ground
Chinese firms like Huawei are poised to capture the largest share of the domestic AI chip market, having grown sales by at least 60%. As Nvidia faces restricted access, local competitors may accelerate innovations to fill the void in gaming and AI accelerator segments.
