Nvidia proves reduced dependence on China amid global shifts

Nvidia just posted fiscal Q2 2027 results that tell a very clear story: the company that once earned the lion’s share of its AI chip revenue from Chinese buyers has effectively replaced that entire market with domestic demand. Total revenue hit $96.2 billion, up 106% year-over-year, and almost none of that growth came from China. Revenue from China, including Hong Kong, came in at $7.88 billion. That’s roughly 8% of total revenue, a fraction of where it once stood. For context, CEO Jensen Huang has acknowledged that Nvidia’s market share in China for advanced AI chips went from approximately 95% to essentially zero. The numbers behind the pivot Data Center revenue, the segment that matters most for Nvidia’s AI narrative, reached $89 billion in the quarter, growing 117% year-over-year. US hyperscalers, the cloud giants building out AI infrastructure at staggering scale, are doing the heavy lifting here. Three US customers alone accounted for 54% of Nvidia’s total revenue in Q2. Shipments of H200 AI chips to Chinese companies represented less than 1% of Data Center revenue. The prior quarter told a similar story. In Q1 FY2027, China revenue fell 53% year-over-year to $4.55 billion, w...