NVIDIA Says China Included in Its $200 Billion CPU Market Forecast

NVIDIA is keeping China inside its long-term CPU opportunity, even as U.S.-China chip tensions remain unresolved. On May 23, 2026, CEO Jensen Huang said the company’s $200 billion CPU market forecast includes China, showing that Nvidia still sees major demand from the world’s second-largest economy. The comment came in Taipei, where Huang arrived before next month’s Computex trade show.

The update matters because Nvidia is expanding beyond GPUs, which power large AI model training. Companies now need more central processors as agentic AI grows. These systems can plan, act, and complete tasks with less human input.

That shift could increase demand for CPU-GPU platforms in data centers. NVIDIA’s new Vera central processors give the company a wider path into AI infrastructure. NVIDIA also reported record first-quarter revenue of $81.6 billion for the quarter ended April 26, 2026, up 20% from the previous quarter and 85% from a year earlier.

NVIDIA Sees China Inside a $200 Billion CPU Market

Vera CPUs Expand Nvidia Beyond GPUs

NVIDIA has built its AI lead through GPUs, but Huang now sees CPUs as another growth engine. During the company’s latest earnings call, he said the Vera CPU gives Nvidia access to a new $200 billion market. When reporters asked if that figure included China, Huang said, “I would think so.”

That answer is important because China remains a difficult market for advanced AI chips. The U.S. has licensed Nvidia’s H200 chips for sale to China, but Chinese approval has not followed. Reuters reported that around 10 Chinese companies have been cleared by the U.S. to buy H200 chips, but no deliveries have happened yet. This gap shows why policy, approvals, and local competition still shape Nvidia’s China outlook.

H200 Delays Keep China Risk in Focus

U.S. Licenses Are Only One Part of the Process

NVIDIA wants to serve China, but the company still needs a clear route through both U.S. and Chinese rules. Huang said the H200 has been licensed to ship to China and called the Chinese market “very important” and “very large.” Still, talks between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing this month did not produce an immediate breakthrough for Nvidia’s H200 sales.

The delay also gives Chinese chip suppliers more room to grow. Beijing has encouraged local firms to use domestic alternatives, which can reduce Nvidia’s share over time. This does not remove China from Nvidia’s forecast, but it changes the timing. For now, Nvidia can discuss China demand, but actual shipments depend on approvals, customer confidence, and policy stability. That makes China a major opportunity and a major bottleneck at the same time.

Latest Nvidia Numbers Show Strong AI Momentum

Revenue Growth Supports the CPU Expansion Push

NVIDIA’s latest financial results give context to Huang’s confidence. The company posted $81.6 billion in first-quarter revenue for fiscal 2027, up 85% year over year. NVIDIA also reported fiscal 2026 revenue of $215.9 billion, up 65% from the prior year, showing how fast AI infrastructure spending has scaled.

The stock closed at $215.33 on May 22, 2026, with a market value of nearly $5.25 trillion. Daily volume reached about 169.3 million shares, while the session high was $221.70 and the low was $214.26.

These numbers show why Nvidia is pushing into CPUs now. Agentic AI needs faster systems, larger memory pipelines, and more balanced data center architecture. GPUs remain central, but CPUs help coordinate workloads and improve full-system performance. That is why Vera matters to Nvidia’s next phase.

Points That Improve the Structure

• NVIDIA’s $200 billion CPU forecast includes China, according to Jensen Huang.
• Vera CPUs help Nvidia expand beyond GPU-led AI training demand.
• H200 sales to China remain delayed despite U.S. licensing.
• NVIDIA reported $81.6 billion in quarterly revenue, up 85% year over year.
• TSMC remains a key manufacturing partner for Nvidia’s advanced AI chips.

Disclaimer:

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