Nvidia Faces $8B China Impact as Earnings Loom Amid Trade Policy Shifts

Nvidia (NVDA) braces for its Q2 earnings report Wednesday, navigating turbulent US-China trade policies that could dent revenues by $8 billion. The chipmaker's high-stakes balancing act follows the TRUMP administration's reversal of a China sales ban—now replaced by a 15% revenue sharing mandate on AI chip exports.

Market momentum remains strong despite geopolitical headwinds. Nvidia shares gained 35% YTD, briefly catapulting its valuation to a historic $4 trillion milestone in July. Analysts project $46.2 billion revenue with 49% EPS growth, building on last year's 122% revenue surge.

The semiconductor giant secured tariff exemptions from new 100% import levies, though broader trade tensions persist. Investors watch for guidance on how export controls and domestic manufacturing incentives will reshape Nvidia's supply chain strategy.