Nvidia (NVDA) Stock: Chipmaker to Pay 15% of China Sales to U.S. Government Under New Agreement

TLDR

Table of Contents

Nvidia and AMD agreed to give the U.S. government 15% of revenues from specific AI chips sold in China in exchange for export licenses
The arrangement allows Nvidia to sell its H20 chips and AMD to sell its MI308 chips in the Chinese market
Nvidia CEO Jensen Huang met with President Trump last week to discuss the deal
Nvidia stock is trading at $180.46, holding near key levels as traders take profits ahead of earnings
Analysts have raised price targets with Morgan Stanley at $200, Citi at $190, and Loop Capital projecting $250

Nvidia and Advanced Micro Devices have reached an unprecedented agreement with the U.S. government. The two companies will pay 15% of revenues from certain chip sales in China to the federal government.

JUST IN:
Nvidia $NVDA and $AMD have reportedly agreed to share 15% of the revenues from H20 chip sales in China 🇨🇳 with the United States 🇺🇸 Government – Financial Times pic.twitter.com/igGrPHPItG
— Evan (@StockMKTNewz) August 10, 2025

The Financial Times first reported this arrangement on Sunday. In return for the revenue sharing, both companies receive export licenses for specific products.

Nvidia gets approval to sell its H20 chips in China. AMD receives permission to export its MI308 chips to the Chinese market.

The deal comes as President Trump continues his tariff policies across global markets. Last week, Trump threatened a 100% tariff on semiconductor imports unless companies build facilities in the United States.

Nvidia CEO Jensen Huang met with Trump last week according to the Financial Times report. The timing suggests these discussions played a role in the final agreement.

A Nvidia spokesperson told the Financial Times the company follows all rules set by the U.S. government for global market participation. The company declined to provide additional details about the arrangement.

Stock Performance and Technical Analysis

Nvidia stock closed at $180.46 on Monday, down 0.2% for the day. The stock has been consolidating around the $180 level as traders take profits ahead of earnings.

Technical indicators show the stock remains in a strong uptrend. The share price sits well above key moving averages with the 50-day around $159 and the 200-day between $135-$140.

Support levels appear solid in the $178-$181 range. If the stock breaks below this zone, the next support sits near $173.

Resistance forms around $183.50 with a stronger level at $186. A breakout above $186 could push the stock toward $190-$200 according to technical analysts.

Analyst Upgrades and Price Targets

Wall Street analysts have been raising price targets on Nvidia stock in recent weeks. Morgan Stanley moved its target to $200 while Citi revised its outlook to $190.

Loop Capital set an even higher projection at $250. Mizuho analysts expect the company to ship six million AI accelerator units this year.

The analyst upgrades reflect strong demand for AI chips across data centers and high-performance computing. Nvidia holds over 90% market share in AI-focused GPU sales.

Recent developments have helped boost semiconductor sentiment. Easing trade tensions between the U.S. and China created a more favorable environment for chip companies.

The launch of OpenAI’s GPT-5 has also increased expectations for AI-driven demand. Both consumer and enterprise segments are expected to drive growth in the coming quarters.

Nvidia became the first company to surpass a $4 trillion market cap in August. The milestone reflects investor enthusiasm for the company’s position in artificial intelligence.

The stock remains one of the most closely watched names heading into its upcoming earnings report. Trading volume typically increases around earnings as investors position for results.

Current RSI readings approach overbought territory but have not yet signaled exhaustion. MACD momentum indicators also point to a bullish bias for the near term.

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