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.

Jensen Huang said he was “surprised” by questions about his company’s chips, given China’s eagerness to acquire them for advanced A.I systems.

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,

Nvidia Corporation's AI accelerator sales in China resume, but risks include overvaluation and reliance on clients testing own solutions. Click for our NVDA update.

The Chinese impact on Nvidia is significant. KeyBanc raised its Q2 revenue estimate to $47.1 billion from $45.1 billion, above Wall Street’s consensus of $45.7 billion. It raised earnings per share to $1.05 from $0.99, slightly above consensus of $1.00.