On May 21, 2026, CNBC reported comments from Nvidia CEO Jensen Huang that the company has "largely conceded" China's artificial-intelligence chip market to Huawei, framing the statement against continuing U.S. export restrictions on advanced AI semiconductors.

Earnings context CNBC cites

  • Nvidia reported another blockbuster quarter the same day, with revenue up 85% to $81.62 billion versus $44.06 billion a year earlier, according to CNBC's linked earnings coverage.
  • The company also announced an $80 billion share buyback program and a dividend increase.

Huang's China remarks

  • Huang told CNBC's Sara Eisen that demand in China remains large, but Huawei is "very, very strong" with a record year likely ahead and a thriving local chip ecosystem because Nvidia has "evacuated that market."
  • He said Nvidia has "really largely conceded that market to them."
  • On near-term sales prospects, Huang said Nvidia told investors to "expect nothing" regarding approvals for advanced chips into China, while adding Nvidia would be "more than delighted to serve the market" if conditions improve and noting roughly 30 years of presence with customers and partners there.

Policy and licensing backdrop in the article

  • CNBC recounts that the Chinese market once accounted for at least one-fifth of Nvidia data-center revenue before tighter U.S. rules, including an April requirement that Nvidia obtain licenses to export chips to China and certain other countries.
  • The piece references prior reporting that Alibaba, Tencent, ByteDance, and JD.com were among firms receiving U.S. Commerce Department clearance to buy H200 chips, while citing a U.S. trade representative saying chip export controls were not part of last week's China talks.
  • Huang joined President Donald Trump's China summit visit the prior week, but CNBC says the trip did little to clarify whether H200 sales will be permitted broadly.

Supply-chain and industry framing

  • Huang described Nvidia investing across the AI industry's "five-layer cake"—energy, chips, infrastructure, models, and applications—and said supporting suppliers is the first priority for Nvidia's growing cash pile as demand scales in hundreds-of-billions-of-dollars increments.

Primary source: CNBC — Nvidia says it has 'largely conceded' China's AI chip market to Huawei (May 21, 2026).