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White House says it's working out legality of Nvidia and AMD China chip deals

1. AMD is included in a new export tax negotiations by Trump administration. 2. Export licenses for AMD and Nvidia approved in exchange for revenue cut. 3. Existing trade laws may complicate the new export licensing deal. 4. Chinese government advises local companies against using Nvidia's H20 chips. 5. Trump's administration signals potential expansion of export deals to other firms.

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Why Bullish?

The involvement in export licenses can enhance AMD's market positioning and revenue. Similar past announcements have led to positive stock movements.

How important is it?

The news directly links AMD to government dealings which could influence financial performance, particularly in China.

Why Short Term?

Immediate effects may be seen as the export tax details unfold, impacting stock volatility. Over time, long-term impacts will depend on the actual realization of revenue from sales.

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