Last fiscal year, Nvidia made $17.1 billion in revenue from selling to China, making it the company's fourth-largest market. That represented about 13% of its total sales for the year. This share declined in the latest quarter, but the company's total sales continued to rise.

NVIDIA CEO Jensen Huang has dismissed security concerns over the company’s H20 chips, saying they pose no national risk to China and that continued sales would benefit both sides. His remarks follow reports that NVIDIA has slowed development of the H20 after Beijing urged domestic firms to avoid the chip.

Nvidia (NASDAQ:NVDA) has experienced a meteoric rise over the past few years, transforming from a graphics card giant for gamers into the undisputed leader of the AI revolution. With a market capitalization soaring to $4.

Nvidia has reportedly suspended production of its China-focused H20 AI chip as Beijing pushes domestic alternatives and analysts warn the uncertainty could hit its Q3 outlook.

Nvidia was blindsided earlier this year when the US government enacted tougher restrictions on selling artificial intelligence chips to China. The restriction prevented Nvidia from selling its H20 chip within the Middle Kingdom,