Nvidia Stock Dips 0.35 as Controversial Revenue-Sharing Agreement with US Govt Pushes Volume to Second in Market

On August 11, 2025, Nvidia (NVDA) closed with a 0.35% decline, with a trading volume of $25.25 billion, ranking second in the market. The stock’s performance reflects broader uncertainty following a controversial revenue-sharing agreement with the U.S. government.

Nvidia has entered a deal with the Trump administration to resume sales of its H20 chips in China, a critical market contributing 13% of its prior fiscal year revenue. Under the agreement, the company will share 15% of its China-based revenue from H20 chip sales with the U.S. government. This follows a prior April export ban that cost Nvidia billions in lost sales and triggered a stock sell-off. The administration reversed the ban in July, but the new terms impose a financial condition on market access, raising legal and strategic questions about its compliance with U.S. export tax rules.

Analysts highlight the deal’s mixed implications. While resuming sales could recoup $15 billion in lost revenue by year-end, the 15% fee may incentivize Chinese clients to shift toward domestic alternatives like Huawei’s chips. Nvidia has also introduced Blackwell architecture-based products to comply with export controls, signaling a potential transition away from H20 chips. However, the arrangement risks long-term market erosion if Beijing perceives the agreement as a barrier to technological independence.

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