Nvidia acknowledges Huawei as a strong competitor, boasts of growing AI chip sales in China despite sanctions

It’s been more than a month since the end of the fiscal year on Nvidia’s calendar, which allowed the company to immediately publish its annual report on Form 10-K. It says that Nvidia’s share of international revenue is shrinking, with the United States accounting for 47% of all cash receipts. At the same time, Nvidia considers Huawei and other Chinese developers to be its competitors.

Image source: NVIDIA

As CNBC explains, in the published report, Nvidia listed the Chinese company Huawei Technologies among its competitors in four out of five product categories, including semiconductor components, cloud services, computing and networking solutions. “There is quite a lot of competition in China. Huawei, other companies are strong and very, very competitive,” Nvidia founder Jensen Huang told CNBC.

In its reports, Nvidia has mentioned Huawei as a competitor for the second year in a row, although for three years in a row it did not consider it necessary to do so due to the Chinese rival being under tough US sanctions.

Overall, Nvidia’s share of international revenue fell from 69% to 56% last year, and fell further to 53% in the last fiscal year. In fact, the company received 47% of its revenue in the United States last year, which in monetary terms corresponds to a sum of more than $61 billion. The company’s revenue in the domestic market has more than doubled in a year. This is explained, as well as the increased concentration of revenue in the United States, by the more active development of computing infrastructure in the country using advanced Nvidia components.

Image source: NVIDIA

The story of suspicions regarding Singapore taught the company to provide the relevant data with the right annotation. Although Nvidia’s revenue last year was determined by 18% by accounts belonging to Singaporean companies, in reality no more than 2% of Nvidia’s products in terms of revenue settled on the territory of this tiny state. By the way, revenue in the Singapore direction increased more than threefold over the year to $23.7 billion, and this is a record among other regions in terms of dynamics.

Taiwan’s revenue only increased by 54%, but allowed the small island to remain in third place. China and Hong Kong are fourth and account for 13% of Nvidia’s total revenue. Growth is also being seen here, even in the face of ever-increasing sanctions. A year ago, the region accounted for 17% of revenue, but in absolute terms, it has since grown by 66%.