Top Senate Democrats have urged President Trump to reconsider his plan allowing artificial intelligence chip sales to China. The proposal would give chip makers Nvidia and Advanced Micro Devices access to the Chinese market if they share 15% of their revenue with the US. However, Senators warn that this deal could compromise US national security goals by strengthening China’s AI sector.
The proposed policy has raised concerns among lawmakers, who fear that it could hurt US defense and tech ambitions. The senators have urged Trump to pause and weigh the risks before moving forward. This move reflects growing unease in Washington about the role of AI chips in global trade and military use.
For investors, the key issue is whether this letter leads to a policy shift. If Trump does not change course, the deal will stand, but new rules could impose significant financial penalties on Nvidia and AMD if they don’t comply. A failure to adapt to changing regulations could impact these companies’ growth outlooks and share prices.
Nvidia relies heavily on sales in China for its data center chips, which are popular among AI users. If new rules cut off those sales, the company could lose billions in annual revenue. AMD also depends on growth in the AI chip space, so losing China sales could slow its progress and limit investor returns.
Source: https://www.tipranks.com/news/nvidia-and-amd-stocks-face-fresh-risk-as-democrats-oppose-trumps-china-chip-deal