Nvidia, a key player in artificial intelligence, is preparing for its Q2 earnings report. Despite high expectations, the company faces several challenges, particularly in the Chinese market.
Analyst Forecasts for Nvidia
According to analyst forecasts, Nvidia's expected earnings per share (EPS) for Q2 is $0.94, a 44.6% increase from the same period last year. In its most recent report for April, Nvidia saw a year-over-year growth of 69%. However, the company incurred a $4.5 billion charge due to new export requirements for AI chips.
Nvidia's Issues in China
Nvidia's revenue share from China shrank from 21.45% to 13.11% from 2023 to 2025. This decline is attributed to geopolitical tensions between the US and China. President Trump proposed a new policy, where both Nvidia and AMD will pay a fixed 15% of sales for export licenses to China. "While we haven’t shipped H20 to China for months, we hope export control rules will allow America to compete in China and worldwide," stated Nvidia's spokesperson.
New Solutions and Their Significance
Currently, Nvidia's most advanced AI workload architecture is Blackwell. However, despite interest in export licenses, the company is developing a new chip called B30A. This chip is expected to allow Nvidia to maintain sales in China, despite restrictions imposed by the US government. Analysts predict the semiconductor market could reach $2 trillion by 2040.
Despite existing challenges, Nvidia retains growth opportunities. Success in the Chinese market may hinge on the new technologies and solutions the company offers in the future.
