Nvidia Stock Soars After CEO Jensen Huang Unlocks Major China Opportunity

CEO Jensen Huang, this week, came in with news that impacted investors, which made them pause to reflect for a second. After all, when Nvidia’s CEO has something to say, markets listen. This time, Huang has something that may change the future not just for Nvidia but also impact the ongoing AI arms race with China.

Though for the investors of Nvidia, the journey has been somewhat like a bumpy ride. As the stock hit an all-time high early in 2025 and also plunged about 37% due to fears of tariffs, inflationary pressures, and chip sales restrictions to China, which unsettled the market. But after the fall, Nvidia regained the momentum quickly, leaving within 4% of record peaks by the time Wednesday closed down. Now, new developments indicate that the rally is nowhere near its end.

Fixing China’s Scenario

For months, uncertainty surrounded Nvidia’s capability to sell its AI-oriented H20 chips in China following the suspension of U.S government sales earlier this year. Those processors were intended to comply with strict U.S export regulations while still providing sufficient computational oomph for China’s demand for AI. Suspension took a heavy toll on Nvidia, which required it to take a $4.5 billion charge in the first quarter.

China has been an essential growth driver. Sales of these chips accounted for $17 billion in fiscal 2025, or about 13% of Nvidia’s overall revenue. Without access, Nvidia could lose up to $26 billion per year, but CEO Jensen Huang’s relentless pleading seems to have worked. Also, Nvidia agreed to a 15% revenue sharing deal with the U.S government that enables the company to resume sales of the H20 chips to China. Although the deal will cut margins, it still secures a crucial market and gives Nvidia time to reposition for the future.

Nvidia’s Strategic B30A

As per a Reuters report, Nvidia is already working on its next giant step, which is a brand new AI chip for China based on its revolutionary Blackwell architecture. The chip, named B30A, is likely to provide half the computation power of Nvidia’s top quality Blackwell B300. That number is not coincidental. President Trump recently threw out the notion of permitting a “scaled-down” Blackwell chip, with 30% to 50% less capacity, as a possible compromise. Nvidia’s reported B30A appears to quite fit gracefully into this political math.

Nvidia itself is reserved, mentioning only that it considers different products to check for government regulation compliance. But if the B30A becomes approved, it might pave the way for billions of new sales, making Nvidia the leader in China’s fast-growing AI market.

Opportunity for the Market

Jensen Huang has already proposed that China’s AI chip market may grow to $50 billion annually within a couple of years. If Nvidia gains only a share of that opportunity, the return would be enormous. Wall Street estimates Nvidia’s revenue at $200 billion in fiscal 2026, which will increase up to $302 billion by 2028. If China can continue its 13% revenue share, the area could represent up to $99 billion of sales over the next three years. 

Also, those estimates do not yet include the potential upside from a possible B30A roll-out. Even with reduced chips, Nvidia has the power to charge a premium. Demand from China for AI infrastructure is endless, and Huang’s policy keeps Nvidia in play even under stricter conditions.

Bottom Line

Nvidia’s roller-coaster has shaken out many investors, but the ones that remain are being rewarded with fresh optimism. Through establishing a way back into China and perhaps introducing a customized Blackwell chip, Nvidia has minimized the risk of one of the biggest knots on its growth narrative.

At less than 30 times next year’s profits, the stock is still appealing for long-term investors. Jensen Huang’s movement, dealing and long-term strategizing have left Nvidia in possession of the keys to a market that can power its next growth phase. For investors, this isn’t merely good news, rather it’s a reminder that in AI, Nvidia continues to lead the pack.

Nvidia’s bet on China has worked, and the payoff could last well into the next decade. As AI adoption is growing faster around the world and demand for computing in China is increasing regardless of restriction, Nvidia has cut itself a profitable middle ground. 

Volatility in the stock may frighten away short-time traders, but for long-term investors, Huang just delivered a map leading to potential revenue of billions. If anything, the volatility has provided an opportunity, as history has seen it that whenever Nvidia is undervalued, it never remains that way for long.