Nvidia (NVDA, Financials) and Advanced Micro Devices (AMD, Financials) will give the U.S. government 15% of revenue from certain AI chip sales to China in return for export licenses, the White House said Tuesday.
The agreements cover Nvidia’s China-specific H20 chip and AMD’s equivalent processors, designed to meet U.S. export limits. President Donald Trump negotiated the deals, which could be extended to other firms.
Trade lawyers say the plan may violate federal rules banning export taxes and limiting licensing fees, setting up potential legal fights.
Nvidia’s H20 had been projected to bring in over $8 billion in quarterly sales before the new restrictions. Investors will be watching whether Chinese chipmakers’ push to replace U.S. tech eats into demand.
This article first appeared on GuruFocus.
