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What Trump's Nvidia and AMD China deal means for the world

1. AMD will share 15% revenue from China sales with the U.S. government. 2. Access to the Chinese market secured for AMD and Nvidia's chips. 3. Investor outlook remains positive; 85% revenue is preferable to none. 4. Uncertainty exists over potential larger revenue cuts in the long term. 5. China's reaction to U.S. revenue sharing is likely mixed.

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FAQ

Why Bullish?

AMD securing access to Chinese markets signals potential revenue growth despite revenue sharing. Historical examples show that market access can drive stock prices up despite additional costs.

How important is it?

The agreement's potential to increase revenue from China makes it critical for AMD's performance.

Why Short Term?

The immediate effect allows AMD to capitalize on the Chinese market, but long-term implications remain uncertain.

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