Nvidia is developing a new chip specifically designed to comply with U.S. export controls while serving its Chinese customer base, according to multiple reports. The move aims to recover market share lost after the U.S. government imposed strict restrictions on high-performance AI chips to China in 2022 and 2023.

China accounted for approximately 20 to 25 percent of Nvidia's data center revenue before export controls took full effect, cutting off access to its H100 and A100 flagship models. RBC Capital Markets estimates the Chinese AI chip market could be worth $20 billion annually.

Nvidia's success depends on Beijing accepting the compliant offering. Chinese customers may face government pressure to adopt domestic alternatives, though Nvidia's technology typically outperforms rivals for advanced AI training and inference. The company's shares traded at $216.28 today, down 0.6 percent.

If Nvidia gains meaningful access to the Chinese market again, the addition could add several billion dollars to annual data center revenue—a material catalyst beyond current analyst consensus. The data center segment remains Nvidia's primary earnings driver, and renewed access to China would reinforce that dominance and support higher valuations.