Stock Weekly Times

In April of 2025, the leading chip giant NVIDIA was hit by a surprise ban from the Trump Administration on the exportation of H20 chips to China which caused billions of dollars worth of revenue loss and the stock to subsequently dive. Similarly, AMD was halted in their sales of the MI308 series of chips. However, the ban was later reversed in July, which brought up the national security concern of Chinese AI development surpassing the U.S.A.. Hence, the main reason why the U.S. government blocked chip exportation and tanked the sales of major chip companies.

The US govt., AMD, and NVDA.

In late July of 2025, Jensen Huang met with Mr. President to advocate for the sale of their H20 chips in China. Less than a week later, the Trump Administration came to an agreement with both AMD and NVDA that they would be able to sell their chips to China but both giants would pay 15% of their generated government to the government. The agreement is positive for both companies, as China has huge markets waiting for these chips, and some sales to China would be better than none. However, this deal may sway Beijing to set in place an order to buy chips within its own country (from Huawei) rather than U.S. based companies as they would not want Chinese companies to be handing money to the U.S. government. Nvidia specifically is projected by investors to hit around $18-20 billion in revenue from sales of their chips in China, which in the most bear case would be around a $3 billion profit for the Trump administration.

The deal that Nvidia and Advanced Micro Devices just signed with the Trump administration? Unconstitutional. It violates Article I, Section 9, Clause 5, which essentially states that the government, whether it be the Trump Administration or Congress, are not allowed to tax exports. Therefore, the deal has been restructured in a way that the two companies will willingly donate funds to the U.S. government. The major question that has arisen is “If the Trump Administration is worried about national security concerns, why did they lift the trading ban and even further, why are they trying to get in on some of the profit?”