What specific aspects of Nvidia's business are most exposed to the impact of tariffs?

**Nvidia's business is most exposed to the impact of tariffs on its AI and data center segments**: 1. **AI Chips**: Nvidia's AI chips, particularly the H20 series, are subject to export restrictions and tariffs. The H20 chips were effectively banned from sale to China in April 2025, leading to a significant loss in potential revenue. The resumption of sales to China is expected to generate substantial revenue, highlighting the sensitivity of Nvidia's AI chip business to tariff policies. 2. **Data Center Segment**: Nvidia's data center segment is a critical source of revenue, and tariffs could impact the sales of its chips to data centers both in the US and abroad. The strong demand for AI hardware in data centers, especially in China, has been a significant driver of Nvidia's growth. Any disruption in this segment due to tariffs could affect the company's overall performance. 3. **International Trade and Supply Chain**: Nvidia's reliance on international trade and its supply chain's global nature make it vulnerable to tariffs. The company has indicated that it is working to increase its manufacturing capacity in the US to mitigate the risks associated with tariffs. However, this transition could be costly and time-consuming. 4. **China Market**: Nvidia's China market is a significant revenue contributor, with China generating $17 billion in revenue for Nvidia in the fiscal year ending January 26, 2024. The tariffs and export restrictions affecting the H20 chips have highlighted the risks associated with operating in this market. 5. **Competitive Landscape**: The competitive dynamics in the AI and data center markets could be affected by tariffs. Nvidia's competitors, such as AMD and Apple, are also subject to similar tariffs, which could impact the overall competitive landscape. In summary, Nvidia's exposure to tariffs is primarily through its AI chips, data center segment, and international trade. The company's efforts to diversify its manufacturing and navigate the regulatory landscape will be crucial in mitigating the impact of tariffs on its business.