Nvidia's Expected $8 Billion Impact from China Raises Concerns for Semiconductor ETFs Before Earnings Reports
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2025
0mins
Should l Buy INTC?
Source: Benzinga
NVIDIA's Earnings Report: NVIDIA Corp is set to release its second-quarter earnings report, which is expected to reflect an $8 billion impact from U.S. chip-export restrictions to China, raising concerns about the sustainability of its revenue.
Market Volatility and ETF Influence: The options market anticipates significant volatility in NVIDIA's stock, potentially affecting various semiconductor ETFs where NVIDIA holds substantial weight, such as VanEck and iShares Semiconductor ETFs.
Impact on Industry Peers: NVIDIA's performance often influences other chipmakers; a disappointing report could lead investors to shift away from companies like AMD and Broadcom, while benefiting those with stronger domestic markets like Intel.
AI and Data Center Growth: Despite regulatory challenges, NVIDIA's data center business is projected to generate $41.2 billion this quarter, indicating strong growth potential amidst the risks associated with its earnings report.
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Analyst Views on INTC
Wall Street analysts forecast INTC stock price to fall
29 Analyst Rating
5 Buy
19 Hold
5 Sell
Hold
Current: 43.100
Low
20.00
Averages
39.30
High
52.00
Current: 43.100
Low
20.00
Averages
39.30
High
52.00
About INTC
Intel Corporation is a global designer and manufacturer of semiconductor products. The Company operates through three segments: Intel Products, Intel Foundry, and All Other. Its Intel Products segment includes Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX). The CCG is bringing together the operating system, system architecture, hardware, and software application integration to enable PC experiences. DCAI delivers workload-optimized solutions to cloud service providers and enterprises, along with silicon devices for communications service providers, network and edge, and HPC customers. NEX helps networks and edge compute systems from fixed-function hardware to general-purpose compute, acceleration, and networking devices running cloud native software on programmable hardware. The Intel Foundry segment comprises technology development, manufacturing and foundry services. All Other segments include Altera, Mobileye, Other.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Historical Split Patterns: Since 2000, Nvidia has executed six stock splits, averaging one every four years, with the most recent 10-for-1 split occurring in 2024, suggesting a potential split in 2028, although splits have historically occurred in pairs.
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See More
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- Projected Revenue Growth: The company anticipates first-quarter revenue of approximately $78 billion, representing a 77% year-over-year increase, indicating continued revenue acceleration, yet the cyclical nature of the semiconductor industry poses risks to long-term growth potential.
- Amazon's Diversification Advantage: Amazon's AWS segment saw a 24% year-over-year sales increase to $35.6 billion in Q4, highlighting its critical role in AI application infrastructure, while its e-commerce and advertising revenues grew by 10% and 23%, respectively, showcasing broad-based business resilience.
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See More
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- Investment Strategies: In a down market, investors might consider Bitcoin-related stocks, particularly those transitioning computing power to AI, which not only provides indirect exposure to Bitcoin but also capitalizes on AI's growth potential.
- Derivatives Trading: Hedge fund managers are actively trading options on the iShares Bitcoin Trust (IBIT), the top Bitcoin ETF globally by assets under management, reflecting sustained interest in Bitcoin derivatives despite their inherent risks.
- Long-Term Holding Strategy: While Bitcoin is currently experiencing cyclical fluctuations, long-term investors may opt to buy and hold Bitcoin at lower prices, anticipating a future price recovery, a strategy that has historically proven effective.
See More
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- Acquisition and Innovation: In June, Wix acquired the coding platform Base44 for $80 million plus future earn-out payments, further solidifying its innovative capabilities in the AI space, which is expected to drive future business growth.
- Investor Confidence: Institutional investors led by Durable Capital Partners agreed to invest $250 million in equity in Wix, reflecting strong market confidence in its AI-driven expansion strategy, potentially providing more funding support for long-term growth.
- Future Outlook: Wix projects mid-teens percentage revenue growth by 2026, with CFO Lior Shemesh stating that 2026 will be pivotal as the company leverages AI technology innovations to accelerate growth and strengthen its leadership in the online ecosystem.
See More
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