<div id="readability-page-1"><div><div><p>Economist <strong>Peter Schiff </strong>and capital markets commentator <strong>The Kobeissi Letter</strong> have sharply criticized <strong>Nvidia Corp.'s</strong> <span>NVDA</span> and <strong>Advanced Micro Devices, Inc.'s</strong> <span>AMD</span> agreement to pay 15% of their China chip revenues to the U.S. government, calling it a “federal shakedown.”</p><h2><strong>The Controversial Deal With Nvidia And AMD</strong></h2><p>Nvidia and AMD, two of the world's leading chipmakers, have reportedly agreed to pay 15% of their revenues from chip sales in China to the U.S. government as part of a deal to secure export licenses.</p><p>This deal, which was a condition for the companies to sell their advanced AI chips (H20 for Nvidia and MI308 for AMD) in China, has sparked controversy and drawn significant criticism from financial commentators.</p><h2><strong>Schiff’s Criticism: ‘Unconstitutional’ Shakedown</strong></h2><p>Schiff voiced strong opposition to the deal, labeling it as unconstitutional.</p><p>Following the publication of the news over the weekend, Schiff took to<strong> X</strong>, formerly <strong>Twitter</strong>, and argued that the payment to the U.S. government represents a &#34;federal shakedown,&#34; specifically criticizing the arrangement where companies pay based on revenue, not profit. </p><h2><strong>The Kobeissi Letter: New Era Of ‘Trade Deals’</strong></h2><p>Meanwhile, the Kobeissi Letter took to X, highlighting the significant shift this deal represents. The commentator warned that this marks a new era in trade negotiations, where the Trump administration now negotiates “company-by-company” trade deals.</p><p>&#34;Most people don't realize how massive this announcement truly is,&#34; The Kobeissi Letter posted. &#34;This covers 15% of REVENUE from China, not PROFIT, for both Nvidia and AMD… The trade war just entered a new era.&#34;</p><h2><strong>Geopolitical And Market Implications</strong></h2><p>The deal comes as the Trump administration has relaxed earlier export bans on Nvidia's H20 chips to China, which had been imposed due to national security concerns.</p><p>Despite these concerns, Nvidia defended the arrangement, stating that it follows the rules set by the U.S. government for participation in worldwide markets.</p><p><strong>Price Action:</strong> In the past five days, Nvidia’s stock has increased by 4.30%, while AMD has dropped 0.95%. Year-to-date, Nvidia has risen by 32.12%, and AMD has gained 43.21%, according to Benzinga Pro.</p><p><strong>Benzinga’s Edge Stock Rankings</strong> show that Nvidia continues to demonstrate a robust upward price trend in the short, medium and long-term periods. Further performance insights can be found here.</p><ul> <li><strong>AMD CEO Lisa Su Says China Strategy Rebounding As MI308 AI Chips Await US License: ‘Better Position Than We Were Ninety Days Ago'</strong></li> </ul><p><em>Photo courtesy: Shutterstock</em></p></div></div></div>

NVDA

NVDL

07788

07388

NVDY

NVDD

NVDX

NVDQ

SOXL

<p>Economist Peter Schiff and The Kobeissi Letter criticized Nvidia and AMD's agreement to pay 15% of their China chip revenues to the U.S. government, calling it a "federal shakedown." This deal, necessary for export licenses, has sparked controversy, with Schiff labeling it unconstitutional. The Kobeissi Letter noted this marks a new era in trade negotiations, emphasizing the shift to company-specific deals. Despite concerns, Nvidia defended the arrangement, and stock performance shows Nvidia up 4.30% in five days, while AMD is down 0.95%. Year-to-date, Nvidia is up 32.12% and AMD 43.21%.</p>

- Economist Peter Schiff and The Kobeissi Letter criticized Nvidia and AMD's agreement to pay 15% of their China chip revenues to the U.S. government, labeling it a "federal shakedown."  
- This deal, necessary for securing export licenses for advanced AI chips, has sparked controversy and is seen as a significant shift in trade negotiations.  
- Despite the criticism, Nvidia defended the arrangement, stating it complies with U.S. government rules, while Nvidia's stock rose by 4.30% and AMD's fell by 0.95% in the past five days.

Benzinga

NVIDIA

GraniteShares 2x Long NVDA Daily ETF

XL2CSOPNVDA

XI2CSOPNVDA

YieldMax NVDA Option Income Strategy ETF

Direxion Daily NVDA Bear 1X ETF

T-Rex 2X Long NVIDIA Daily Target ETF

T-Rex 2X Inverse NVIDIA Daily Target ETF

Direxion Semicon Bull 3X

Peter Schiff, The Kobeissi Letter Warn Of 'Federal Shakedown' Over Nvidia, AMD's 15% China Chip Revenue Deal With Trump Administration