The Threat Factors for Nvidia
1. Trump’s 15% China Sales Deal – But No Effect Yet
Nvidia agreed to hand over 15% of its China sales directly to the U.S. government. On paper, this sounds huge. But here’s the reality – Nvidia reported zero sales from China in Q2, and expectations for the next quarter are also flat. That means Trump’s headline deal isn’t adding any financial burden right now, though it highlights the growing political pressure around U.S.–China tech trade.
2. Over-Dependence on U.S. Revenue
A much bigger concern is Nvidia’s shrinking global footprint. Just last year, China made up 13% of the company’s revenue. Now, that figure has dropped to zero. Revenue from China, Taiwan, and other regions is also falling year-on-year. The only place Nvidia is growing strongly is the United States, where sales continue to surge.
Impact:
Nvidia’s growing reliance on U.S. revenue and loss of Chinese sales could raise investor concerns, adding volatility to tech stocks and influencing semiconductor sector sentiment in global markets.
