On December 12th, Nvidia removed all products from its official Tmall flagship store. The "Products" page displayed "Sorry, there are no related products", while the "Categories" and "Recommendations" pages only displayed high-end esports, gaming laptops, and other products. Customers need to redirect to other brand stores to place orders. The relevant reason is unknown, and the store customer service stated that the store is "only for display".
Image source: Tmall screenshot
However, third-party channels on the Taobao platform can still purchase Nvidia related products. In addition, in the JD self operated zone for artificial intelligence accessories, Nvidia's related products are still displayed for sale, including professional graphics cards, professional computing cards, etc.
Three days ago, Nvidia was investigated by the State Administration for Market Regulation. Due to Nvidia's alleged violation of the Anti Monopoly Law of the People's Republic of China and the Announcement of the State Administration for Market Regulation on the Anti Monopoly Review Decision on the Approval of Nvidia's Acquisition of the Equity of Melos Technology Co., Ltd. with Additional Restrictive Conditions (State Administration for Market Regulation Announcement [2020] No. 16).
Nvidia responded to domestic media by saying, "Nvidia wins with its strength, which is reflected in our benchmark test results and value to customers. Customers can choose any solution that best suits them. We strive to provide the best products in every region and fulfill our commitments wherever we conduct business. We are happy to answer any questions regulatory agencies may have about our business
China is an important market for Nvidia. Nvidia's layout in China involves multiple aspects such as manufacturing, sales and services, and technology cooperation. Lenovo, Shenzhou, Haier, JD.com, Tmall, Alibaba Cloud, and Tencent Cloud are all Nvidia partners.
On the early morning of November 21st Beijing time, Nvidia released its third quarter financial report for the fiscal year 2025. According to the financial report, Nvidia's revenue was $35.1 billion, a year-on-year increase of 93.7%; The net profit was 19.31 billion US dollars, a year-on-year increase of 108.9%. According to the third quarter financial report, Nvidia's revenue in mainland China (including Hong Kong) was $5.4 billion, accounting for approximately 15% of total revenue.
In this quarter, Nvidia's gross profit margin was 74.6%, an increase of 0.6% compared to the same period last year. Nvidia CFO Colette Kress stated that the increase in gross profit margin is mainly due to an increase in the sales proportion of AI chips in data centers. According to the financial report, the data center business, which covers software and hardware products such as GPU chips and AI servers, achieved a revenue of 30.8 billion US dollars during the period, a year-on-year increase of 112% and a month on month increase of 17%.
However, Nvidia has not given up on expanding its business in China.
Recently, sources have reported that the world's second-largest company by market capitalization will have around 4000 employees in China by the end of this year, up from around 3000 at the beginning of 2024. This means that in just one year, the number of Chinese team members has increased by nearly a thousand.
Insiders say that as a key part of its expansion, Nvidia has added about 200 people in Beijing to strengthen a research team engaged in autonomous driving research. One of the insiders said that the company has also expanded its after-sales service and network software development team.
Lawyer Liu Jiayin from Beijing Yuecheng Law Firm believes that during the anti-monopoly investigation, there will be no restrictions on Nvidia's business operations in China, but it may require a reassessment of its business strategy to comply with China's anti-monopoly regulations.
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