Nvidia Tells Cloud Clients to Sell at Least 51% of Services Outside China
NVDA sits 24% above its 52-week low of $164.27.
Summary
Nvidia has told its cloud computing clients they must now sell at least 51% of their services to non-Chinese companies, per the FT. That is a hard structural condition on the customer base, not a soft warning — it forces data centre operators to rework who they sell to or lose access to Nvidia hardware. The move effectively hard-codes the US-China split into Nvidia's own commercial relationships, ahead of any further export rule changes. China exposure has been a persistent drag on the story, flagged in the FY26 10-K alongside export challenges, and this raises the cost of staying in the market for both Nvidia and its partners. Watch whether Chinese cloud customers push back or shift to domestic accelerators, and whether Washington formalizes the 51% threshold in export rules.
At the time of this announcement, NVDA was trading at $203.80 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.9T. The 52-week trading range was $164.27 to $243.37. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.