Core Viewpoint - The U.S. government is considering allowing NVIDIA to sell its latest AI chips in China, with a 15% revenue share from sales going to the U.S. government, indicating a shift in policy towards semiconductor exports to China [2][3]. Group 1: NVIDIA and AMD's Agreements - NVIDIA's CEO Jensen Huang has reached an agreement with President Trump to allow the sale of the H20 AI chip in China, which is a modified version of an older chip [2][3]. - AMD has also confirmed a similar revenue-sharing agreement with the U.S. government, allowing it to sell the MI308 AI chip in China, with both companies agreeing to pay 15% of their sales to the U.S. government [3][4]. - If approved, these agreements could open up hundreds of billions of dollars in sales opportunities for NVIDIA and AMD in the Chinese market [3][4]. Group 2: Chip Specifications and Market Demand - The H20 chip, designed for the Chinese market, has performance capabilities reduced to about 20% of the H100 chip's performance, but still outperforms most domestic Chinese AI chips [4][5]. - As of April, NVIDIA reportedly received around $18 billion in orders for the H20 chip, indicating strong demand from Chinese internet companies [5]. Group 3: Security Concerns and Market Reactions - There are ongoing concerns regarding the security of NVIDIA's chips, with allegations of potential backdoor vulnerabilities leading to scrutiny from Chinese authorities [7][8]. - Following Trump's announcement of the revenue-sharing arrangement, NVIDIA's stock experienced volatility, with a slight decline in share price, while Intel's stock saw an increase in after-hours trading [9].