Will the US-China trade war hit Nvidia? The market awaits the tech giant's results.

After the end of the trading session on August 27 this year, the American technology company Nvidia will publish its results for the second quarter of fiscal year 2025, i.e. from May 1 to the end of July this year.

The results will have a direct impact on the prices of technology companies, especially those operating in the semiconductor and artificial intelligence sectors.

According to Reuters, revenues should increase by 53% year-on-year, to approximately $46 billion. Similar expectations were expressed by the LSEC analyst team, which estimates sales at just over $46 billion.

Bank of America (BofA), on the other hand, forecasts a slightly more optimistic scenario and believes that the threshold of USD 47 billion should be exceeded, which will be a better result than expected in May this year.

Nvidia's results are heavily impacted by the US-China trade war

All of these studies take into account the tense trade relations between the United States and China, which could result in a decline in potential sales in the second quarter of up to $8 billion.

Nvidia reached an agreement with the federal government to pay a 15% license fee in exchange for permission to export chips to China.

The company declared that it would prepare a new chip specifically for the needs of Chinese customers .

Nevertheless, experts are convinced that the global demand for chips offered by Nvidia will grow and for this reason they forecast an increase in sales in the third quarter to USD 68 billion.

Morgan Stanley raised its share price to $206

Morgan Stanley doesn't rule out that Nvidia's share price will rise to $206 before the end of the year. On Tuesday, the stock traded at $179.40 per share, a slight decline from yesterday's close.

The company's share value has already increased by approximately 30 percent, and its current valuation has exceeded $4.3 trillion.