Could Nvidia's Sales Drop 30% due to a Trade War Between the U.S. and China?
It's been a rough year for Nvidia (NASDAQ: NVDA). Since 2025 began, Nvidia's stock has fallen by more than 30%, shedding more than $1 trillion in value off the company's market cap. Yet Nvidia's end markets are still growing by leaps and bounds, especially when it comes to data center revenue tied to the artificial intelligence (AI) sector.Investors looking for a rebound, however, should take caution. Up to 30% of the company's revenues could be at risk this year due to the ongoing trade war between the U.S. and China. If you're betting on Nvidia, you need to understand what's at risk.Earlier this month, Nvidia revealed that it may be forced to take a $5.5 billion charge related to H20 chips intended for sale in China. New rules may require the firm to obtain licenses to export these AI chips to China. According to the BBC, Nvidia was told that the license requirement "addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China." Nvidia's management team was also told that these new rules "will be in effect for the indefinite future." Continue reading
It's been a rough year for Nvidia (NASDAQ: NVDA). Since 2025 began, Nvidia's stock has fallen by more than 30%, shedding more than $1 trillion in value off the company's market cap. Yet Nvidia's end markets are still growing by leaps and bounds, especially when it comes to data center revenue tied to the artificial intelligence (AI) sector.
Investors looking for a rebound, however, should take caution. Up to 30% of the company's revenues could be at risk this year due to the ongoing trade war between the U.S. and China. If you're betting on Nvidia, you need to understand what's at risk.
Earlier this month, Nvidia revealed that it may be forced to take a $5.5 billion charge related to H20 chips intended for sale in China. New rules may require the firm to obtain licenses to export these AI chips to China. According to the BBC, Nvidia was told that the license requirement "addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China." Nvidia's management team was also told that these new rules "will be in effect for the indefinite future."