Nvidia AMD China revenue has taken the spotlight after the two tech giants agreed to hand over 15% of their AI chip sales from China to the U.S. government. The move is part of a new deal that allows them to resume exports to the Chinese market following months of restrictions.
New agreement to resume China chip exports
According to U.S. officials, Nvidia and AMD will pay the levy on sales of their advanced AI chips—Nvidia’s H20 and AMD’s MI308—sold in China. In return, the U.S. Commerce Department has granted export licenses, effectively lifting the ban imposed under previous restrictions.
Constitutional concerns over the levy
The arrangement has already sparked controversy, with legal experts warning it may violate the U.S. Constitution’s ban on export taxes. Critics argue the deal bypasses congressional approval and sets a dangerous precedent for government involvement in corporate revenues.
Impact on Nvidia and AMD stock prices
Following the announcement, Nvidia AMD China revenue concerns weighed on investor sentiment. Nvidia’s shares fell around 1–1.8%, while AMD dropped 2–3% in pre-market trading. Analysts say the decline reflects fears of reduced profit margins despite restored access to the Chinese market.
Why China matters for chipmakers
China is one of the largest markets for AI hardware, and Nvidia and AMD have long relied on it for a significant portion of their revenue. U.S. export restrictions in 2023–2024 cut off access to their most advanced chips, forcing the companies to design downgraded versions. The new deal restores part of that lost business—but at a cost.
Political and trade implications
The decision could have wider geopolitical consequences. While it strengthens U.S. oversight of AI technology exports, it may also strain U.S.-China trade relations. Industry watchers expect Beijing to respond, possibly by accelerating domestic AI chip development to reduce reliance on American suppliers.
Market outlook for Nvidia and AMD
Analysts remain divided. Some believe the restored market access will outweigh the 15% revenue loss, boosting long-term growth. Others warn that sustained payments to the U.S. government could hurt competitiveness, especially if China develops strong local alternatives.
