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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 174.76

+0.3%

Dec 23 3:59 PM EST

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To: Bill Wolf who wrote (195192)	8/11/2025 10:27:32 AM
From: Elroy	Read Replies (1) of 197017

Nvidia and AMD have agreed to give the Trump administration 15 per cent of revenues from their China chip sales in return for export licences. Thinking some more about this, it is sort of hard to follow the idea that these chips are potentially harmful to US interest because they advance China's war capabilities and AI capabilities, but they're OK to sell if the US government gets some percentage of the sale. China gets the ability to make serious weapons and beat the US in AI (if those two items were the concerns and the reason for the original export ban), but those concerns don't matter if the US gets some cash. NVDA's gross margins are already about 85%, so China is already paying through the nose for these chips. If NVDA raises prices to make China pay for the 15% that the US will receive, it just means the gross margin on China sales (a price increase is 100% gross margin) will become about 94%. Question for the administration - why is it not Ok to sell these chips with an 85% gross margin, but it is OK to sell them with a 94% gross margin?

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