Nvidia Corp (NASDAQ: NVDA) continues to struggle with gaining upward momentum after President Trump announced new reciprocal tariffs on dozens of countries, including China, on April 2nd.
China has already signalled plans of slapping retaliatory tariffs on American goods in response to Trump’s policy change, which may trigger a trade war between the world’s two largest economies.
Such a backdrop could hurt US firms with significant revenue exposure to China. Interestingly, one such name is the AI darling, Nvidia Corp, according to Goldman Sachs.
China’s contribution to Nvidia’s revenue
Goldman Sachs expects Sino-US trade tensions to be a meaningful headwind for NVDA as the Greater China region currently drives about 39% of its annual revenue.
Nvidia’s H20 chips, designed for export to China, have seen strong demand, especially from the country’s major tech companies like ByteDance, Tencent, and Alibaba.
However, the Trump administration continues to tighten restrictions on chip exports to Beijing that may also hurt the titan’s business moving forward.
Additionally, China has started advising its companies to avoid using Nvidia chips as they do not reportedly comply with the country’s latest energy efficiency requirements.
Put together, these factors related to Sino-US trade tensions could materially weigh on NVDA’s future revenue, added Goldman Sachs strategists in their recent report.
NVDA remains a Wall Street favourite
Despite new tariffs on China and the possibility of President Xi announcing retaliatory levies on American goods, Wall Street remains bullish on Nvidia stock.
The consensus rating on NVDA shares currently sits at “buy” with the mean target of about $176, indicating potential for some 70% upside from current levels.
That’s because many believe that Nvidia is still a rock-solid name in the AI market that Statista forecasts will grow at a compound annual rate of more than 26% through the end of this decade.
Plus, Nvidia now pays a dividend yield of 0.036%, which makes it attractive for income investors as well.
LVS also has major revenue exposure to China
Other than Nvidia, Goldman Sachs sees casino stocks, particularly Las Vegas Sands Corp (NYSE: LVS), as most exposed to the Sino-US trade tensions in 2025.
LVS has a significant footprint in Macao, also known as the “Las Vegas of Asia,” due to its popularity as a gambling destination. The US casino and resort company currently has more than 60% of its revenue exposed to Macao.
Much like Nvidia, however, analysts are keeping bullish on Las Vegas Sands shares as well.
The consensus “buy” rating on LVS is coupled with a mean target of about $59 at the time of writing.
That translates to a potential for nearly 50% upside in the dividend stock that currently yields 2.56%.
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