Boeing or Nvidia: Who Wins Big from Trump-Xi Summit?
As the Trump-Xi summit approaches, two major US companies stand out due to their significant exposure to China: Boeing (NYSE: BA) and NVIDIA (NASDAQ: NVDA). While both companies have faced challenges related to their China business, they have done so in different ways. Boeing's Q2 2026 results showed a turnaround signal, with revenue increasing by 8% year-over-year to $24.56 billion. Deliveries reached a quarterly high of 171, and free cash flow turned positive at $631 million. However, core earnings per share (EPS) still missed consensus expectations due to a charge related to the VC-25B presidential jet.
NVIDIA's Q2 results were vastly different. The company's revenue more than doubled year-over-year to $96.22 billion, with data center revenue reaching $89.02 billion and increasing by 117%. Non-GAAP EPS of $2.22 beat consensus expectations for the fifth consecutive quarter. However, NVIDIA is currently supply-constrained, which has limited its growth guidance.
Boeing's reliance on China for aircraft orders makes it a binary trade for the summit outcome. Chinese airlines were historically major customers of Boeing's 737 and 787 models. If a deal is reached during the summit, this could lead to significant upside for Boeing, given its already record commercial backlog of over 6,200 aircraft valued at $597 billion.
NVIDIA, on the other hand, has already priced China data center compute revenue at zero in its forward outlook. While the company still has a large cloud industry backlog behind it, this exposure is not binary due to the summit outcome.