"Nvidia's business in China will be the focus of investors when the AI chipmaker reports earnings on Wednesday, following an unusual deal with the Trump administration and Beijing's subsequent efforts to stall imports. Caught in the crossfire of Washington and Beijing's ongoing trade war, the fate of Nvidia's China business hangs on where the world's two largest economies land on tariff talks and chip trade curbs."
"The artificial intelligence chip pioneer recently agreed to pay the U.S. federal government 15% of the sales it made it China in exchange for export licenses, a move that has drawn bipartisan criticism. Beijing-despite huge appetite for Nvidia's chips in China-has urged domestic companies to limit purchases over apparent security concerns. Reports have emerged that Nvidia has told some suppliers to suspend production of its China-special H20 chips. But Reuters has reported that Nvidia is developing a new and more powerful chip for China."
Nvidia's China business faces significant uncertainty as U.S.-China trade tensions and new export restrictions reshape market access. The company agreed to pay the U.S. federal government 15% of sales in China for export licenses, drawing bipartisan criticism and prompting Beijing to urge domestic firms to limit purchases over security concerns. Reports indicate Nvidia asked some suppliers to suspend production of China-specific H20 chips while Reuters reports the company is developing a more powerful chip for China. China accounted for 13% of Nvidia's revenue last year, and curbs earlier shaved $8 billion from the July quarter and prompted a $4.5 billion charge.
Read at Fast Company
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