Nvidia And AMD Slip In Premarket As Reports Say U.S. Will Take 15% Cut Of China AI Chip Sales

Core Viewpoint - Nvidia and AMD have agreed to pay 15% of their revenue from AI chip sales to China to the U.S. government as part of a deal to secure export licenses, leading to a decline in their stock prices [1][2][3] Group 1: Company Agreements - Nvidia will pay 15% of the revenue generated from H20 AI chip sales to China, which is a modified version of its H100 chip to comply with export regulations [1] - AMD has also agreed to a similar 15% cut on sales of its MI308 chip designed for the Chinese market [2] Group 2: Financial Implications - The U.S. government could potentially earn $2.25 billion from Nvidia based on projected sales, with Nvidia estimating $15 billion in revenue from H20 chip sales to China [3] - AMD reported an $800 million write-off due to export restrictions on its MI308 chips, suggesting that the U.S. government could earn an additional $120 million from AMD if sales projections are accurate [3] Group 3: Market Reaction - In premarket trading, Nvidia's shares fell by 1.16% to $180.61, while AMD's shares decreased by 2.3% to $168.79 following the news [3]