NVIDIA (NASDAQ:NVDA) is quietly preparing a new artificial intelligence chip for China that would surpass the performance of its current H20 model, even as US regulators weigh how much access Chinese companies should have to cutting-edge American technology.

AI bellwether Nvidia is slated to report quarterly results after markets close on Wednesday, and traders are prepared for the stock's biggest post-earnings move in more than a year.

Today, the blue-chip Dow Jones Industrial Average closed down 0.8% at 45,282, the broad-based S&P 500 was off 0.4% to 6,439, and the tech-heavy Nasdaq Composite lost 0.2% at 21,445.