Nvidia’s findings highlight the effects of the US-China trade war.

Following an unprecedented agreement with the Trump administration and Beijing’s subsequent attempts to halt imports, investors will be watching Nvidia’s (NVDA.O) new tab business in China when the AI chipmaker announces earnings on Wednesday.

Nvidia’s China business is caught in the middle of Washington and Beijing’s protracted trade battle, and its future depends on how the two biggest economies in the world respond to tariff negotiations and trade restrictions on chips. Bipartisan criticism has been leveled at the artificial intelligence chip pioneer’s recent agreement to pay the U.S. federal government 15% of its sales to China in exchange for export permits.Despite China’s enormous demand for Nvidia’s processors, Beijing has advised domestic businesses to restrict their purchases due to alleged security concerns.

“We’ve got to get clarity on these two governments first, whether China wants the chips and whether the administration is going to allow it,” said Jamie Meyers, senior analyst at Nvidia shareholder Laffer Tengler Investments. “And if so, how is that going to work?”

China was the source of 13% of Nvidia’s sales last year. Due to China’s resistance complicating prediction calculations for the year and the US clearance coming late in the quarter, many analysts did not account for any income from H20 sales in that country for the second quarter ending in July 2025.

Nvidia had stated in May that the restrictions would reduce sales by $8 billion for the July quarter. The last three months saw a $4.5 billion charge as a result of the curbs.
In contrast to the triple-digit growth it experienced for several quarters, the corporation is anticipated to announce that second-quarter revenue increased 53.2% to $46.02 billion, based on LSEG statistics.