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A Look At Nvidia And AMD's $3 Billion Export “Tax” Deal With Trump

1. AMD and Nvidia to pay U.S. 15% of revenues from chip sales to China. 2. The deal allows expanded market share and up to $3 billion for the U.S. 3. Concerns arise over pricing impact on Chinese customers and chip demand. 4. Legal challenges may affect future capabilities of similar agreements. 5. Framework opens door for potential tax on U.S. goods by government.

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FAQ

Why Neutral?

Despite potential revenue increase, market reaction was negative, affecting stock prices.

How important is it?

The agreement affects significant revenue streams, though its long-term effects are unclear.

Why Short Term?

The immediate stock market impact is evident, with reactions altering short-term investor sentiment.

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