Nvidia's Forecast Amid China Sales Anxiety

Nvidia, a top AI chip player, is set to reveal a strong revenue forecast, but concerns loom over expanded U.S. restrictions on chip sales to China. The AI-fueled market surge, lifting the semiconductor index by 50% in 2023, faces a test. Analysts emphasize Nvidia's market dominance, and any threat could curb investor enthusiasm. U.S. bans on H800 and A800 chip sales to China, its third-largest market (20% of revenue), raise uncertainties. Nvidia downplays short-term impacts, yet a Wall Street Journal report suggests up to $5 billion in Chinese orders may be at risk. After hitting a five-month low in October, Nvidia's stock, once the first trillion-dollar chip firm, declined over 12% by October's end. Investors are watchful as Nvidia trades at 31 times its forward earnings, compared to rival AMD's ratio of 33, amid growing China-related concerns.