Nvidia and AMD cut a chip revenue-sharing deal with Trump. Here’s how their stock prices are reacting

In a historically unusual move, two of the world’s largest chipmakers, Nvidia and AMD, have reportedly cut a deal with the Trump administration to hand over 15% of their revenues from certain chip sales to the U.S. government. Here’s what to know about the deal and how Nvidia’s and AMD’s stock prices are reacting.

What’s happened?

Yesterday, the Financial Times reported that chipmaking giants Nvidia and Advanced Micro Devices (AMD) have struck a highly unusual deal with the U.S. government. According to the FT, the deal will see Nvidia and AMD give up 15% of revenues from chip sales of two specific chips to China, the H20 chipset by Nvidia and the MI308 chipset by AMD.

In return for the 15% revenue-sharing agreement, the U.S. government has approved export licenses for those chips to Ch