Nvidia and AMD have agreed to hand over 15% of their AI chip revenues from China to the U.S. government in exchange for export licenses—an arrangement that marks a rare intersection of corporate profit with trade policy enforcement.
The deal specifically targets Nvidia’s H20 chips and AMD’s MI308 GPUs, allowing both companies to restart sales to China after facing government-imposed freezes. Analysts warn this move could erode their gross margins, while U.S. officials maintain it doesn’t undermine national security.
The announcement triggered a modest market reaction: Nvidia shares dipped around 1–1.4%, and AMD saw declines of up to 2.6% in pre-market trading.
Market reaction was muted but negative, with Nvidia shares dipping around 1% and AMD sliding over 2% in early trading. The precedent, however, may reverberate far beyond stock prices—potentially influencing future U.S. export policy, global AI chip competition, and trade negotiations with countries deemed strategic rivals.
