Nvidia Stock Price Today Rises as Company, AMD Agree to 15% China AI Chip Revenue Share with US Government

Nvidia stock price today edged higher as the semiconductor giant confirmed compliance with a landmark deal requiring both Nvidia and Advanced Micro Devices (AMD) to share 15% of their revenue from certain AI chip sales to China with the United States government. The move comes amid intensified US trade restrictions under President Donald Trump’s latest tariff measures.

The agreement, reported by major outlets including The Financial Times, Bloomberg, and The New York Times, applies specifically to Nvidia’s H20 AI chip and AMD’s MI308 chip—both designed with reduced performance to comply with US export controls. The deal was finalized during a White House meeting last week between Nvidia CEO Jensen Huang and President Trump, underscoring Washington’s determination to regulate AI technology exports while preserving competitiveness.

How Is Nvidia Stock Price Today Reacting to the Revenue-Sharing Agreement?

As of August 11, 2025, Nvidia stock (NASDAQ: NVDA) closed at $182.74, up 1.09% for the day. Pre-market data showed a slight dip of 0.64% to $181.57, suggesting that traders are cautiously optimistic about the company’s ability to navigate tightening US-China technology restrictions.

Analysts note that while the 15% revenue share with the US government represents a rare arrangement in international trade, it may offer Nvidia a more predictable regulatory environment for selling modified chips in China. Given China’s role as a major AI hardware market, the agreement could help the company avoid prolonged sales disruptions.

• Open: $181.55

• High: $183.30

• Low: $180.40

• Market Cap: $4.46T

• P/E Ratio: 58.86

• Dividend Yield: 0.022%

Why This Matters for Investors

The Nvidia revenue-sharing deal reflects a broader geopolitical strategy. By imposing a 15% revenue cut on sales of AI chips to China, the US government aims to control technology transfer without fully cutting off trade ties. This is especially relevant after recent moves to tighten export rules for high-performance GPUs.

For investors, the main takeaway is that Nvidia’s China sales are not ending—they are evolving. The H20 and MI308 chips were already adapted to meet export restrictions by lowering performance thresholds. Now, the revenue-sharing component adds a new cost factor, but also grants a level of regulatory approval that may stabilize long-term market access.

Expert Analysis: Balancing Security and Market Access

Industry analysts describe the arrangement as a “calculated compromise.” According to semiconductor market experts, the 15% levy could be offset by stable demand from Chinese AI developers who still seek US-designed chips for compatibility and ecosystem advantages.

Nvidia’s official statement emphasized its commitment to “follow all rules set by the US government for participating in global markets.” The company also reiterated that while shipments of the H20 chip to China have been paused for months, it hopes that “export control rules will let America compete in China and worldwide.”

AMD has yet to issue a formal comment on the deal.

What’s Next for Nvidia Stock?

Going forward, market watchers will track several key factors:

• China Demand Resilience: Whether Chinese buyers accept the reduced-performance chips despite the revenue-sharing cost.

• US Export Policy Changes: Any adjustments under ongoing tariff measures or new legislative actions.

• Earnings Impact: How the 15% revenue contribution to the US government affects Nvidia’s quarterly profits.

If Nvidia manages to maintain stable China sales volume while expanding in other international markets, the overall earnings hit could be minimal. On the other hand, further restrictions or retaliatory measures from Beijing could dampen stock momentum.

In summary, Nvidia stock price today reflects a market balancing optimism over preserved China sales channels with caution over ongoing trade tensions. Investors will closely watch the upcoming earnings call for concrete figures on the impact of this unprecedented deal.

You Must Know:

Q1: Why did Nvidia agree to pay 15% of China AI chip revenue to the US government?
The deal is part of a regulatory framework allowing Nvidia to sell modified AI chips in China while complying with US export controls.

Q2: Which Nvidia chip models are affected by the deal?
The agreement applies to Nvidia’s H20 chip and AMD’s MI308 chip, both modified to meet export restriction requirements.

Q3: How did Nvidia stock price react to the news?
Nvidia’s stock closed at $182.74, up 1.09% for the day, indicating cautious investor optimism.

Q4: Will this deal reduce Nvidia’s profits?
Yes, the 15% revenue share will reduce gross revenue from China sales, but it may also help secure continued market access.

Q5: Is AMD also part of this agreement?
Yes, AMD’s MI308 chip is included in the deal, though AMD has not yet commented publicly.

Q6: Could China retaliate against this move?
Potentially, but industry experts believe both sides have incentives to maintain limited technology trade.