Aug 14 - Wedbush is calling it a bullish sign for the AI sector. Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) are reportedly getting the green light to sell AI chips in China, provided they hand over 15% of profits to the U.S. government.
According to sources, Nvidia will share revenue from its H20 AI accelerator, while AMD will do the same with its MI308 chips.
Warning! GuruFocus has detected 5 Warning Signs with NVDA.
Analyst Daniel Ives said this unusual arrangement removes a key growth barrier for the AI industry, with potential ripple effects for U.S. Big Tech leaders like Microsoft (MSFT), Palantir Technologies (PLTR), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN).
Ives noted that keeping the blockade on Nvidia's H20 would have been a gift to Huawei, potentially worth $15 billion annually, and a blow to U.S. competitiveness. He emphasized the U.S. now holds the edge in AI, a first in three decades but warned China's tech giants, including Alibaba (NYSE:BABA), Baidu (BIDU), Tencent (TCEHY), and Xiaomi (XIACF), are ramping up fast.
The Middle East's AI push is another battleground, with Saudi Arabia and the UAE looking to U.S. firms for infrastructure and expertise. Wedbush sees the 15% fee as a small price for massive market access.
This article first appeared on GuruFocus.
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Wedbush: Nvidia, AMD China AI Deal a 'Bullish Catalyst' for Big Tech
Published 2 months ago
Aug 14, 2025 at 5:54 PM
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