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Nvidia And AMD Slip In Premarket As Reports Say U.S. Will Take 15% Cut Of China AI Chip Sales

1. AMD and Nvidia agreed to pay 15% revenue on AI chip sales to China. 2. This deal facilitates their export licenses from the U.S. government. 3. AMD's MI308 chip sales are affected; $800 million write-off reported. 4. Market reacted negatively; AMD shares fell 2.3% during premarket trading. 5. Potential U.S. government earnings from AMD could reach $120 million.

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FAQ

Why Bearish?

The imposed revenue cut may pressure AMD's profits. Historical restrictions on exports have previously led to stock declines.

How important is it?

The revenue share agreement directly impacts AMD's profitability and investor confidence.

Why Short Term?

Immediate market sentiment has fluctuated due to regulatory uncertainties. Past export issues have quickly impacted stock performance.

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