Chipmakers’ High-Stakes Deal: Nvidia & AMD to Hand 15% of China Revenues to U.S. in Landmark Agreement

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Global investors are signaling unease in the corporate credit arena credit spreads have dropped to near-record lows, hinting at overly rosy growth projections that outpace IMF forecasts. Fidelity International is already playing defense with zero exposure to cash bonds and shorting high-yield credit a move that raises the stakes for equity markets.

Today’s Global Menu

• Focal Point

• World Markets

• Frontier News

• Crypto World

FOCAL POINT

Silicon Squeeze: Why Nvidia & AMD Are Paying 15% of China Chip Sales to Uncle Sam

In a move that blends tech strategy with geopolitical chess, Nvidia and AMD have agreed to hand over 15% of their China AI chip revenues to the U.S. government. This unusual revenue-sharing deal is the ticket to resuming sales of Nvidia’s H20 and AMD’s MI308 chips products previously halted under an April export ban.

For Nvidia, China is no small fry: $17 billion last fiscal year, or 13% of total revenue. AMD’s slice was smaller in dollars $6.2 billion but bigger in proportion, making up 24% of 2024 revenue. With stakes that high, both companies opted to play ball.

Publicly, Nvidia says only that it complies with U.S. rules, while AMD and China’s Foreign Ministry remain silent. Critics are divided some hail it as a clever way to curb China’s AI push without fully cutting off trade, while others warn it blurs the line between national security policy and revenue generation.

How the U.S. will use this money is unclear. But one thing is certain: the AI chip race is no longer just about technology it’s about leverage, access, and who gets to shape the future of computing.

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WORLD MARKETS

🚀 Surge: Asian markets nudged higher Monday, fueled by robust tech earnings and firm investor confidence. Nikkei futures climbed toward a new record high, even as markets await Tuesday’s U.S. inflation data potentially key to Federal Reserve policy direction. With tariff deadlines looming and geopolitical tension simmering, investor focus couldn’t be sharper.

⏸ Pause: European markets kicked off the week with modest gains in futures trading echoing Asia’s cautious optimism even as markets watch inflation signals from across the pond and brace for potential rate cues. With central banks and geopolitical crosscurrents in play, the rebound remains fragile and attention-grabbing.

FRONTIER NEWS

⚖ Balance: U.S. markets face a pivotal week futures are edging higher ahead of Tuesday’s CPI and Thursday’s PPI updates, but the lurking stagflation risk could rattle the rebound. With inflation creeping into consumer goods, investor optimism hinges on whether prices cool or reignite.

👁 Vision: SoftBank’s founder Masayoshi Son is making his boldest move yet doubling down on AI with massive bets on Arm, OpenAI, and Ampere, aiming to steer the tech giant toward a future shaped by artificial superintelligence. The momentum is real: the Vision Fund just swung to profit, thanks to wins in Nvidia and AI startups.

⬇ Slide: Once‑iconic Intel is now on a two‑decade downward slope losing its edge while facing mounting internal friction and political scrutiny. CEO Lip‑Bu Tan, under fire for China ties, is racing to rebuild credibility both in Silicon Valley and with the administration.

🏛 Summit: Intel’s CEO Lip‑Bu Tan is heading to the White House this Monday after President Trump publicly called for his ouster over alleged links to Chinese firms. Tan plans to pitch Intel’s commitment to U.S. chip independence and national security on the very ground where trust and chips collide.

CRYPTO WORLD

Crypto Crescendo: Bitcoin Nears $122K, Ethereum Eyes $4.5K Market Roars to Life

The crypto market is buzzing with electrifying momentum: Bitcoin surged nearly 3% to roughly $121,900, and Ethereum climbed about 1.5% to reach $4,295,buoying the total crypto market cap to $4.13 trillion a near 2% jump in one day. This lift isn't just numbers it signals one of the strongest altcoin rallies in months, defying the usual summer lull.

Institutional interest is charging the rally. Ethereum is riding a wave of record inflows into ETH treasuries and ETFs, including BlackRock’s ETHA swelling past $12.3 billion in net assets and Grayscale’s ETH trust holding $4.5 billion. Meanwhile, corporate treasuries are piling in too: a combined 1.75 million ETH, valued at over $7.53 billion, is held by public companies such as Bitmine Immersion, SharpLink Gaming, and Coinbase.

The excitement spilling into social media is vivid hashtags like #buying and #bullish are trending, overshadowing bearish chatter, though analysts caution that retail FOMO could slow things down.

With Bitcoin dancing near $122K and Ethereum eyeing $4.5K, the crypto stage is set for dramatic developments into the end of the quarter.

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