NVIDIA will give Chinese clients about 1% of ordered RTX chips. This is reported by Reuters. The total order volume is estimated at $70 billion, while actual deliveries are around $700 million.
RTX is a line of NVIDIA graphics processors. In China they are bought both for gaming machines and for local computing.
For a trader this is a signal on the indices. NVIDIA is a heavyweight of the American market, so news about its deliveries moves the entire market, not just one stock.
How big is the gap?
The ratio is rare even for a supply-constrained market. Almost the entire order book remains unfulfilled.
- $70 billion - total order volume from Chinese clients
- about $700 million - what will actually go to deliveries
- 99% of the ordered volume remains unfulfilled
- 1% - the share of orders NVIDIA will fill
Why were deliveries cut?
The reasons are not disclosed in the report. Reuters does not provide them.
For NVIDIA, the China segment has remained the most contentious piece of revenue all year. The 1% figure shows how narrow this channel has become.
What does this mean for a trader?
NVIDIA is the largest constituent by weight in the Nasdaq 100 and S&P 500. Therefore any news about its Chinese deliveries moves not only the NVDA ticker, but both indices as a whole.
- Timing of release. Such headlines arrive before the start of the US session.
- Moment of reaction. They are priced in during the first minutes after 16:30 Moscow time.
- Choice of instrument. For working with indices, it is worth selecting a challenge with the right markets in advance.
Key point: a single line about NVIDIA's Chinese deliveries can move both the Nasdaq 100 and the S&P 500 at once.
What happens next?
The market is waiting for confirmation from the company itself. The question is whether NVIDIA will officially name these volumes.
- Revenue forecast for the next quarter - the second point of focus
- Publication dates for the US market are conveniently kept in the economic calendar
Have you held Nasdaq through such a headline?
News about NVIDIA and China arrives before the open. The index starts with an immediate gap, and here the account rules matter more than the idea. The daily loss limit at some prop firms is calculated from the balance at the start of the day. A gap at the open can cut a position before you can get to the terminal. Somewhere the limit is calculated from equity, somewhere US stocks are not in the list of instruments at all. These lines take a minute to read - unlike the consequences.