Nvidia Faces New China Risks Ahead of Earnings Report

Nvidia investors face renewed volatility as geopolitical tensions between Washington and Beijing escalate. The chipmaker's H20 AI chips, designed specifically for the Chinese market to comply with U.S. export restrictions, are now under scrutiny from Chinese authorities. Beijing has reportedly advised tech companies against using these chips for government purposes, raising concerns about potential tracking technology embedded in the hardware.

This development follows Nvidia's $4.5 billion inventory charge in Q1 2026 due to export restrictions and a subsequent revenue-sharing deal with the TRUMP administration. With quarterly earnings imminent, market watchers are weighing whether these new regulatory headwinds will impact Nvidia's performance in one of its key markets.