CNBC's Kristina Partsinevelos joins 'Money Movers' to discuss Nvidia's China risks and what's next for the company in China.

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Nvidia is experiencing ongoing uncertainty regarding its business in China due to export bans on its H20 chip and increased pressure from Chinese authorities for domestic firms to use local alternatives. The company is expected to report no revenue from China for the most recent quarter, despite having a significant backlog prior to the ban. While U.S. officials have started granting limited export licenses, analysts do not anticipate immediate revenue recovery from China.

Nvidia is reportedly slowing production of its H20 chip and considering the introduction of a new B30 chip designed for the Chinese market. CEO Jensen Wang has identified China as a major market opportunity, but the company's stock momentum may remain capped until management provides clearer guidance. Meanwhile, strong demand for Nvidia's other products, such as the Blackwell Ultra chip, continues to drive high expectations for the company's overall performance.

What's next for Nvidia in China

As we look ahead to NVIDIA earnings tomorrow night, uncertainty around China still looming after reports that it halted production of its made-for-China chip. Our Christina Parzenevalos has more on what to expect, and obviously one of the most important prints of the quarter, KP. Yeah, and so for NVIDIA, the China story is really less about what just happened, what you just talked about, and more about what comes next. The company's latest quarter will almost certainly show zero revenue from China after the H20 export ban, which is a stark contrast to the estimated $16 billion backlog that Oppenheimer says existed when the ban actually hit in April. The stock, though, is trading near all-time highs. Look at that, trading at 181. The all-time high was around 184. But it faces a critical test. Can management provide any visibility on China's return? U.S. officials began granting limited licenses in August, but with the quarter ending on July 31st, a lot of Wall Street analysts just don't expect any immediate revenue recognition for China. Chinese authorities are also simultaneously pressuring domestic firms to buy local alternatives like Huawei chips, just as NVIDIA is really trying to restart supply. And then there's recent reports suggesting NVIDIA is already slowing H20 production due to this pushback, though the company only said it, quote, constantly manages supply chains to address market conditions. So somewhat of a vague answer that didn't really deny it. The wild card, though, is NVIDIA's new B30 chip design for China, with speculation that President Trump's administration could approve exports in the near term. That could mean today's muted H20 revenues, specifically for China, get replaced by much larger B30 sales down the line. With CEO Jensen Wang calling China a $50 billion market opportunity, even capturing low single digit share would be material to the stock. But until management really offers any concrete guidance specifically around China, this overhang will likely cap the stock's momentum. Options market is pricing a 6% swing, guys. Interesting, KP. We were talking with Kramer this morning. The average price target on NVIDIA is up like 8% in a month. It's a little bit strange to see the street get bulled up in advance of the print. Yes, and most of that, I was just checking that. And so most of the upside and change to estimates actually came for their guidance. And it seems like the high end of the street is anticipating $55 billion. That is substantial for a guide. And the reason they're saying that, not to do with China, but the wrap up of Blackwell. You have the Blackwell Ultra production. There seems to be still, you know, not enough supply to keep up with demand coming from other manufacturers like Supermicro. Cori, we've been talking about it. So they're reading the leaves, I guess, from all the other companies still complaining about trying to get a hold of these chips. And that's translating to higher expectations for guide for NVIDIA. Christina, thank you. It's going to be an important number tomorrow night. Christina Parts in Nevillos bringing us up to speed on NVIDIA.

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What's next for Nvidia in China

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