Key Points
Under a new agreement, Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) will reportedly send 15% of revenue from China-bound chip sales to the U.S. government, potentially generating billions in federal income annually.
While the policy currently targets high-margin semiconductor exports, it raises concerns about whether broader outbound tariffs could follow, impacting U.S. multinationals across sectors.
The move signals a shift toward monetizing U.S. technology dominance for fiscal gain, but it also introduces political and regulatory uncertainty that could complicate international trade relationships.
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Transcript:
[00:00:04] Doug McIntyre: So I think we figured out how we make up the national deficit and maybe even start to pay down the debt. president Trump was able to get a deal with Nvidia and AMD. He gets 15 heat, not heat. The government gets 15% of the revenue when, those chips are sold into China, the less powerful, less rule chip, but still very good chips.
[00:00:31] Doug McIntyre: Now that’s gonna be a lot of money. I mean, I can’t tell you what the 15% is, but the sales of those chips into China are gonna be in the billions of dollars every year.
[00:00:42] Lee Jackson: I think it was really kind of smart to go down that road.
[00:00:45] Doug McIntyre: Well, it, begs the question of what other roads is he going to go down in there?
[00:00:50] Doug McIntyre: Is he gonna start to ask for, he’s getting tariffs now. Because people from Canada have stuff coming to the United States. Is the president going to ask for an outbound tariff from American, countries who wanna sell stuff overseas? Now we’re getting away from governments and countries and we’re moving to actual companies, right?
[00:01:16] Doug McIntyre: So if you’ve got an American company that’s selling things, chocolate. Hershey’s is selling chocolate to Russia, does the US government get 15% of the price of that candy bar? I mean, if, the president decides that he really wants to go down this path all the way, he could wreck some companies.
[00:01:41] Doug McIntyre: Fortunately, AMD and Nvidia have massive margins, so it’s not gonna like them.
[00:01:46] Lee Jackson: Yeah, I, think this could be a one-off, ’cause number one, I think it bothers. Some in the political world that he’s going down this road. And, but you know what, these are the same people that didn’t give a damn as we just ran up.
[00:02:02] Lee Jackson: Excruciating debt. Excruciating debt that, where interest cost on our treasury debt is more than military budget. So something’s gotta get done and this is a start.
[00:02:17] Doug McIntyre: Well, the open question is. Are these one offs or is there a plan by the administrations to start to charge a certain amount of money to many of the companies that sell their product services, whatever it is?
[00:02:33] Doug McIntyre: in China, it’s overseas. Well, well listen, knowing the Trump administration, they may decide that it’s gonna also be the EU and Canada and Brazil. It could be China’s a start. Yeah,
[00:02:46] Lee Jackson: I think it is a good idea and, it helps two American based companies and that’s also positive
[00:02:53] Doug McIntyre: And it puts some money into the treasury, which is very helpful.
[00:02:56] Lee Jackson: Yeah. and again, for, Nvidia and AMD, 85% is better than one minus one.
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