NVDA Rallies As CEO Jensen Huang Arrives In China; Traders Eye China Sales Revival Ahead Of Earnings

• Nvidia shares rose 1% in overnight trading; the stock has gained for six sessions straight, rising 15%.
• Investors view Huang’s presence positively, seeing it as a potential catalyst for reviving Nvidia’s chip sales in China, which have been stalled for months amid trade issues.
• Stocktwits sentiment for NVDA remained ‘extremely bullish.’

Nvidia shares rose 1% in overnight trading heading into Thursday, extending their sharp rally as investors closely monitored developments from China, where U.S. President Donald Trump had just concluded his first meeting with Chinese counterpart Xi Jinping.

Nvidia CEO Jensen Huang joined a group of top U.S. tech and business executives on Trump’s visit at the last minute, with the delegation arriving in Beijing on Wednesday. 

While few details were immediately available about the business-focused discussions, investors viewed Huang’s presence positively, seeing it as a potential catalyst for reviving Nvidia’s chip sales in China, which have been stalled for months amid trade issues.

Media outlets broadcast Trump’s and Xi’s opening remarks following an elaborate arrival ceremony. Xi said the two countries “should be partners, not rivals,” while Trump said the U.S. delegation looked forward to discussions around “reciprocal” trade. 

The two leaders are expected to address issues including trade, the Iran war, and Taiwan. Before departing for Beijing, Trump said in a Truth Social post that he would urge Xi to “open up” the country — a reference to expanding the presence and business opportunities of U.S. companies in China.  

NVDA Retail Sentiment Bullish

On Stocktwits, the retail sentiment for NVDA remained ‘extremely bullish’ early Thursday, unchanged from the last week. 

“NVDA has no presence in China, so any agreements will catapult this higher,” said a trader. Another wrote: “With the momentum that’s built, high probability to $240 as the next stop. Big resistance at that level. Any good news out of Beijing, I would hope to hit that resistance prior to earnings.”

NVDA’s China Pressures

Investor sentiment and gains across semiconductor stocks have surged to record highs lately. Until recently, Nvidia, the sector’s standout player, has curiously lagged behind. Among other factors, the erosion in the company’s business in China due to U.S. export restrictions has been a key overhang.

Huang recently said Nvidia’s revenue from China has effectively dropped to zero, reiterating the detail from the company’s latest results. Just two years ago, Nvidia was a dominant chip supplier in the region with $25 billion in sales from the market, representing 32% of the company’s total revenue in 2024.

Nvidia shares gained 14% in April. In comparison, the iShares Semiconductor ETF (SOXX) rallied 40.4%, recording its best month on record.

NVDA Q1 Results Next Week

The Beijing talks take on even greater significance ahead of Nvidia’s fiscal first-quarter report on May 20. Analysts are expecting another blockbuster quarter from the chip giant, though after the stock’s negative reaction to its previous earnings beat, the market's response this time is difficult to predict.

Nvidia’s first-quarter revenue is expected to rise 79% to $78.98 billion, and adjusted profit is expected to increase 119% to $1.78 per share – setting fresh records for both the top- and bottom-line.

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