Nvidia is set to publish its earnings report on Wednesday, with investors particularly focused on the company's business in China amid trade agreements with the US and new restrictions from Beijing.
US-China Trade Situation
Nvidia finds itself at the center of the US-China trade war, and its prospects now depend on how both sides navigate tariffs and regulations on advanced semiconductors.
Impact on Nvidia's Revenue and Margins
China accounted for 13% of Nvidia's total revenue last year. For Q3, revenue is expected to be $52.96 billion, representing a 51% year-over-year increase. However, margins may decline by 5-15 percentage points due to the federal arrangement.
Market and Trader Expectations
Traders anticipate significant fluctuations in Nvidia's market value following the Q2 report. Expected price swings could be around 6%, lower than the long-term average of 7%.
In the context of an unstable trading environment, Nvidia continues to monitor the situation in China, which will be crucial for its future performance and margins.
