Nvidia CEO Jensen Huang has said the company has “largely conceded” China’s artificial intelligence chip market to Huawei, as ongoing United States export restrictions continue to reshape the global semiconductor and AI hardware landscape.

Huang’s remarks came as Nvidia posted another strong quarter, with revenue jumping 85 per cent to $81.62 billion from $44.06 billion a year earlier, according to CNBC.

The company also announced an $80 billion share buyback programme and increased its dividend payout.

Despite the upbeat earnings, China remains a major point of tension in Nvidia’s outlook and global strategy.

“The demand in China is quite large,” Huang said. “Huawei is very, very strong. They had a record year, they’ll likely, very likely, have an extraordinary year coming up, and their local ecosystem of chip companies are doing quite well, because we’ve evacuated that market.”

He added, “We’ve really largely conceded that market to them.”

The Chinese market previously made up at least one-fifth of Nvidia’s data centre revenue.

However, the company has since been largely cut off from the market after the Trump administration informed Nvidia in April that it would require export licences to ship chips to China, as well as to several other countries.

“I don’t have any expectation, which is the reason why we put all of our guidance, all of our numbers, all the expectations that I’ve set with all of our analysts and investors to invest nothing, to expect nothing,” Hang said.

Still, he indicated that Nvidia remains willing to re-enter the market if conditions become more favourable.