Tariff Negotiations Could Derail Nvidia’s China Business. Here’s Why I’m Not Worried About It.
From Nasdaq: 2025-05-26 16:00:00
President Trump announced new tariffs on countries worldwide, with a focus on rebalancing trade relations with China. Nvidia’s revenue breakdown shows 13% from China, but reports suggest products routed through Singapore end up there, potentially making up 31% of revenue. Deals in the Middle East could offset any losses in China for Nvidia.
Despite potential challenges in China, Nvidia’s partnerships in the Middle East show promise for future growth. The company’s chips remain crucial in the AI movement, with deals in Saudi Arabia and the UAE highlighting opportunities beyond China. This diversification could support Nvidia’s long-term prospects and make it a compelling investment option.
Investors may be wary of Nvidia’s future due to its exposure to China, but the company’s partnerships in the Middle East signal ongoing growth potential. With a strong valuation profile and promising relationships, Nvidia could be an attractive investment for those with a long-term horizon. Consider the 10 best stocks recommended by the Motley Fool’s Stock Advisor team before making a decision on Nvidia.
Read more at Nasdaq: Tariff Negotiations Could Derail Nvidia’s China Business. Here’s Why I’m Not Worried About It.