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Semiconductor giants Nvidia (NVDA) and Advanced Micro Devices (AMD) are in focus this morning, thanks to reports of a unique arrangement requiring 15% of China-related artificial intelligence (AI) chip revenue to be paid to the U.S. government. In exchange, the companies will receive export licenses to sell the Nvidia H20 and AMD MI308 in China, respectively, granting them access to a key market for their AI chips.
As investors weigh the unusual deal, anonymously confirmed by a government official to the AP, both NVDA and AMD are volatile on heavy trading volume to start this Monday. Both stocks were down about 0.9% each in the early minutes, and are now trading green. In 2025 so far, AMD has gained 39%, while NVDA is up 31% - easily outperforming the broader equities market.
