Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the U.S. government. Trump said he also negotiated a similar deal with chipmaker Advanced Micro Devices (AMD).

Outside of the U.S., China remains one of the most important markets fueling demand for high-performance chipsets, particularly graphics processing units (GPUs). Nvidia CEO Jensen Huang has estimated that the AI opportunity in China alone could be worth as much as $50 billion.

Rep. Don Beyer says it's a mistake to allow Nvidia remain in business with China and dubs US-NVDA revenue-sharing deal unconstitutional.

Just because it's already the biggest company in the world by market cap doesn't mean the GPU leader doesn't have a lot of room to grow.

China is an important market for Nvidia, generating $17.1 billion in fiscal 2025 revenue, or 13.1% of total revenue. However, Nvidia and AMD ( AMD) recently agreed to pay the U.S. government 15% of Chinese revenue as part of a deal to secure export licenses to China.

Is the good news fully priced in? Explore key insights on demand, stockpiling, and margins. Read why NVDA is a Hold.

Nvidia can sell its AI chips in China, and hyperscalers are spending more heavily on data center infrastructure than Wall Street anticipated.

The US government will use its 15% sales tax on NVIDIA and AMD chips sold to China to pay down US debt, in a new strategic move from the Trump admin.