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Nvidia agreed to a 15% tax on China AI chip sales to regain export licenses. This is viewed positively, despite political controversy, as it enables faster revenue recovery in the Chinese market.
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Tech Stock ProsInvesting Group LeaderFollowSummaryNvidia Corporation and Advanced Micro Devices, Inc. agreed to a 15% chip tax on China AI chip sales, finally unlocking export licenses that have been missing since April.Despite political controversy, the deal is a net positive for Nvidia, enabling faster license approvals and revenue and market share recovery in China.Nvidia could rake in $7.1B in H20 sales from H20. If the U.S. government takes 15%, it would be taking about $1.1B, and Nvidia would come home with $6B.So if this is what it takes to get those licenses rolling, then we say so be it. NVDA stock remains best positioned as an AI pick in H2 2025.Looking for a portfolio of ideas like this one? Members of Tech Contrarians get exclusive access to our subscriber-only portfolios. Learn More Β»PM Images Nvidia Caught In The Trade War Nvidia Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (AMD) have agreed to pay a chip tax for the sale of their H20 and MI308 AI chips into...
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