New NVIDIA TRUMP Deal
Monday, August 11, 2025, Trump struck another deal based on his trade policy, this time with NVIDIA, the leader in high-quality chips crucial for AI and adjacent technological advancements. Prior to today, there were bans from the Biden administration on all exports of highly advanced chips to China. In response to this, NVIDIA created the H20 chip, which it believes falls below the “highly advanced” threshold. Trump, prior to today, did not allow NVIDIA to export the H20 chip. Yet this all changed after a meeting with Jensen Huang, the ceo of NVIDIA, where they struck a controversial deal that allowed the US to rake 15 percent off the revenue of the chips, which can now be exported.
Like everything, there are multiple angles to this deal. I will brush over the political implications then focus on what this means for investors.
Some opponents of the deal highlight national security threats by allowing China easy access to this technology. Ciritics go as far as to say “might as well sell them F-15 jets” to highlight the implications of this deal. Others see this as an opportunity for the US government to increase revenue, which would alleviate the burden of its debt that has been amassing over the decades.
As for the investor, we can place faith on numbers and the CEO. Jensen Huang has said restricting NVIDIA from entering Chinese markets will hurt its market share in the long run while companies like Huawei claw their way into competing with NVIDIA. It is worthy to note that some believe this is a double-edged sword, as some believe the introduction of H20 chips will be used by competitors in China to leapfrog and catch up to NVIDIA chips. The fact that Huang agreed to this deal should speak to his stance on the situation.
In addition, many analysts believe the lifted restrictions on chips will allow revenue to hit as high as 15 billion dollars or more conservatively an average of 9 billion in the next quarter. NVIDIA famously has high margins on all its products, which has not gone unnoticed by investors. The 15 percent fee is a small price to pay and will be outweighed by said margin and by the introduction into Chinese markets. NVIDIA is currently near its 52-week high, and this extra boost in revenue should help to grow the stock even more. From an investing standpoint, I believe NVIDIA, all things considered, will benefit from this deal, and we can continue to see a bullish ticker.
