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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wolf who wrote (195192)	8/11/2025 10:27:32 AM
From: Elroy	Read Replies (1) \| Respond to of 197028

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?

To: Bill Wolf who wrote (195192)	8/11/2025 11:34:23 AM
From: Art Bechhoefer	2 Recommendations Recommended By sbfm Telecaster Read Replies (1) \| Respond to of 197028

Bill -- Selling AI chips to China seems a lot like selling scrap iron to Japan prior to World War II. Only this time, the U.S. government wants a sales commission of 15%. I wonder who thought this would be a good way for expanding tariff related income to replace some tax cuts for wealthier households without adding to the inflation caused by tariff increases. So the government gets a dividend from private firms without even owning their stock. Is Qualcomm, and its power efficient chips next on the list? One almost certain result will be an earlier China takeover of Taiwan. Oh, they didn't think of that? Art