US Gets 15% Cut of Nvidia, AMD China Chip Sales

Nvidia and AMD have agreed to pay the US government 15% of their semiconductor sales in China in exchange for export licenses. The deal is part of a larger effort by the US to secure its leadership in the tech industry, particularly in artificial intelligence. Nvidia's CEO, Jensen Huang, has been lobbying for the resumption of chip sales to China, which were previously banned due to security concerns. The agreement is seen as unprecedented and highlights the escalating tech trade tensions between the US and China.

The article discusses the current state of the US stock market, particularly the impact of the artificial intelligence (AI) wave on semiconductor companies like Nvidia and AMD. It highlights Nvidia's refutation of security risk allegations made by Chinese state media and the agreement between Nvidia, AMD, and the US government to pay 15% of their China chip sales to the US in exchange for export licenses. The article also touches on the upcoming data releases, including the consumer price index, and their potential impact on the Federal Reserve's rate decisions. Additionally, it mentions the resurgence of 'loud luxury' and the 'treatonomics' trend.

The U.S. government is profiting from the AI boom by demanding a 15% cut of Nvidia and AMD's sales in China in exchange for export licenses. The tech-heavy Nasdaq Composite reached a fresh all-time high, driven by the AI wave. Investors are bracing for a data-heavy week, including the consumer price index reading. Meanwhile, SoftBank's Masayoshi Son is betting big on AI, predicting artificial superintelligence will arrive in 10 years.

European markets are expected to open positively on Monday, August 11, 2025, with futures data indicating higher openings for major indexes such as the FTSE 100, CAC 40, DAX, and FTSE MIB. Investors are watching the U.S.-China tariff truce deadline on August 12 and awaiting key U.S. inflation reports this week, which will influence interest rate decisions at the Federal Reserve's September meeting.

Nvidia and AMD have agreed to give the US government 15% of revenues from certain chip sales in China in exchange for export licenses to sell specific chips, amid President Trump's tariffs on semiconductor imports.

U.S. stock futures rose slightly on Sunday night as the market approaches all-time highs ahead of key inflation reports this week. The Dow Jones Industrial Average futures increased by 56 points, or 0.09%, while S&P 500 futures and Nasdaq 100 futures climbed 0.1% each. Investors are cautious due to high valuations, a dimming macroeconomic outlook, and tariff fallout. Nvidia and AMD have agreed to pay 15% of revenues from certain China chip sales to the U.S. government in exchange for export licenses.

The U.S. government has agreed to allow Nvidia and AMD to sell artificial intelligence chips to China in exchange for a 15% cut of the revenue generated from these sales. This deal, described as highly unusual, comes after the Trump administration initially banned the sale of these chips due to national security concerns. Nvidia's CEO, Jensen Huang, met with President Trump and agreed to the terms, which could funnel over $2 billion to the U.S. government. The decision has been met with criticism from national security experts who worry that it will encourage China to pressure other companies to make similar arrangements, potentially compromising U.S. national security.

Nvidia's H20 chips are facing growing distrust in China due to allegations of 'back doors' and potential US government surveillance. A Chinese state media outlet affiliated with CCTV has urged Chinese buyers to boycott the chips, despite Nvidia's denials of any vulnerabilities. The H20 chips were designed for the Chinese market and were exported with a licence from Washington, with Nvidia agreeing to pay 15% of its revenues to the US government.