Tariff Negotiations Could Derail Nvidia's China Business. Here's Why I'm Not Worried About It.

New export controls around China could serve as a serious headwind for Nvidia.

May 26, 2025 - 21:33
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Tariff Negotiations Could Derail Nvidia's China Business. Here's Why I'm Not Worried About It.

On April 2, President Trump gave a commanding speech at the White House during which he outlined a plethora of new tariffs that would be applied to just about every country around the world. In the grand scheme of things, though, there are only a few geographic regions where the President really wants to rebalance trade relations. Chief among these countries is China.

Over the last month and a half, semiconductor powerhouse Nvidia (NASDAQ: NVDA) has been a tangential talking point as it relates to tariff negotiations with China.

Let's explore why China is such an important market for Nvidia. Moreover, I'll outline a number of growth opportunities beyond the region and make a case for why I'm still confident in Nvidia's long-term prospects should its business in China begin to contract.

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