Daijiworld Media Network – New York

New York, Aug 27: Nvidia Corp. is set to announce its quarterly results on Wednesday, but the chipmaker’s complicated sales in China have left Wall Street deeply divided. Revenue estimates for the upcoming quarter differ by nearly $15 billion — the widest gap in at least a decade — reflecting mounting uncertainty over the company’s standing in the world’s largest semiconductor market.

The turmoil stems from U.S. government restrictions on AI chip sales to China, introduced under President Joe Biden in 2022 and further muddled under President Donald Trump, who briefly banned sales in April before allowing them again this month, with a 15% government levy. Adding to the uncertainty, Beijing has reportedly asked domestic firms to avoid Nvidia’s H20 processors, specifically designed for China.

China accounted for 13% of Nvidia’s revenue in fiscal 2025, and analysts fear that unclear guidance could spark volatility. “The uncertainty is going to be centered around if they’re able to guide to some inclusion of China-based revenues or not,” said Matt Stucky of Northwestern Mutual Wealth Management.

Wall Street expects Nvidia to report $46.2 billion in Q2 revenue and $1.01 in adjusted earnings per share, with forecasts for the next quarter pegged at $53.5 billion in revenue and $1.21 EPS. Investors will also be watching CEO Jensen Huang’s comments on the upcoming B30 chip, which could replace the H20 in China.

With Nvidia now the world’s most valuable company at $4.4 trillion, and holding an 8.1% weight in the S&P 500, its results could sway the broader market. Options traders are pricing in a potential 6% swing in shares the day after earnings.

Despite the uncertainty, analysts say demand for Nvidia’s Blackwell chips outside China remains strong enough to drive growth. “Any inclusion of revenue from China is just icing on the cake,” said David Wagner of Aptus Capital Advisors.