Nvidia, AMD Face New U.S. Tax Hit on China Chip Sales

​Nvidia and AMD are staring down a new tax twist that could cut into their China earnings. According to insiders, roughly 15% of the revenue they make from chip sales in China will soon flow to the U.S. Treasury under the latest tax rules.

The shift comes as Washington tightens its grip on semiconductor trade with China, aiming to capture more value from high-tech exports while also putting pressure on Beijing’s chip ambitions. Both companies have long relied on Chinese buyers for a significant chunk of their business, particularly in AI and data center chips.

For Nvidia, the move adds another wrinkle to its already complex China strategy, which includes selling modified chips that skirt U.S. export controls. AMD, meanwhile, has been pushing aggressively into AI processing, a sector where Chinese demand remains strong despite restrictions.

Investors are split on the impact. Some see the tax as a manageable margin hit given the companies’ soaring global demand, while others warn it could speed up China’s push to replace U.S. chip tech with homegrown alternatives.

For now, both chip giants are keeping quiet publicly. But behind the scenes, industry sources say they’re exploring ways to adjust pricing or production to cushion the blow—because in the high-stakes world of semiconductors, even a 15% slice can be worth billions.