Nvidia Hits New High Amid US-China Chip Deal

Nvidia's stock price reached a new high, up 0.5% to $183.10, following a revenue-sharing deal with the US government on China chip sales. The deal allows Nvidia and AMD to regain access to China's AI chip market while sharing 15% of revenue with the US government. The arrangement is expected to preserve a major revenue stream for Nvidia while tightening US control over next-gen chip exports.

Title: Nvidia's Stock Price Surges to New High Following Revenue-Sharing Deal with US Government

Nvidia's stock price reached a new high, up 0.5% to $183.10, following a revenue-sharing deal with the US government on China chip sales. The agreement allows Nvidia and AMD to regain access to China's AI chip market while sharing 15% of their revenue with the US government. This arrangement is expected to preserve a major revenue stream for Nvidia while tightening US control over next-gen chip exports.

The deal, brokered by the Trump Administration, marks a significant development for Nvidia's growth prospects. Under the terms of the agreement, Nvidia will pay 15% of total revenues from H20 sales in China to the US government. While this revenue-sharing condition may slightly impact margins, the deal opens a valuable door to one of the largest AI markets globally [1].

Nvidia's H20 chips are designed to meet U.S. export control rules while still offering strong AI computing capabilities. China is a major consumer of advanced chips for applications in data centers, cloud computing, and AI development. The latest approval will help Nvidia re-enter the market legally and competitively, potentially recovering lost market share in China and boosting its global revenue base [2].

AMD, Nvidia's main rival in the AI chip market, also stands to benefit from the deal. AMD had been grappling with challenges due to U.S. government export control restrictions and the ongoing U.S.-China trade dispute. The recent agreement may help AMD recover from its recent stock fall and regain access to a crucial market [1].

Analysts have mixed views on the long-term implications of the deal. While some see it as a net positive, with 85% of revenue still being retained, others caution about potential future revenue cuts if sales to China continue to grow. The arrangement underscores the complex geopolitical dynamics at play in the global chip market [3].

The revenue-sharing deal is part of a broader strategy by the Trump Administration to secure a stronger position in negotiations with China. The move is seen as a transactional approach aimed at maintaining US leadership in advanced technology, including AI and chip exports [3].

References:
[1] https://www.investors.com/news/technology/nvidia-stock-amd-china-ai-chips-trump/
[2] https://www.nasdaq.com/articles/nvidia-wins-china-sales-approval-will-h20-chip-deal-boost-growth
[3] https://www.cnbc.com/2025/08/11/trump-nvidia-amd-china-chip-revenue-deal-implications.html