New Street: NVIDIA may have 10% China revenue by 2027
NVIDIA could see up to 10% of its revenue (around $37 billion to $47 billion) tied to China by 2027, says New Street Research.
NVIDIA was down 5% in regular trading on Monday.
The exposure comes from both legal sales in China and Hong Kong (6%) and booked officially outside of China (4%), making investors a bit uneasy.
Jensen Huang allegations risk NVIDIA crackdown
That 4% in booked officially outside of China is split: half goes straight into China, while the rest ends up with Chinese-controlled companies abroad.
On top of that, there is a potential crackdown on NVIDIA's business operations after allegations surfaced about CEO Jensen Huang's involvement with a suspected Chinese spy.
Even with US chip export controls in place, NVIDIA technology is still finding its way into China, which only adds more pressure as the company tries to keep leading the AI race.