{"id":1743,"date":"2025-08-19T16:42:39","date_gmt":"2025-08-19T16:42:39","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/08\/19\/trump-letting-nvidia-sell-chips-to-china-is-a-major-mistake-heres-why\/"},"modified":"2025-08-19T16:42:39","modified_gmt":"2025-08-19T16:42:39","slug":"trump-letting-nvidia-sell-chips-to-china-is-a-major-mistake-heres-why","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/08\/19\/trump-letting-nvidia-sell-chips-to-china-is-a-major-mistake-heres-why\/","title":{"rendered":"Trump letting Nvidia sell chips to China is \u2018a major mistake\u2019: here\u2019s why"},"content":{"rendered":"
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President Donald Trump has recently greenlit Nvidia Corp (NASDAQ: NVDA) to resume selling its chips to China on the condition that it\u2019ll share 15% of China revenue<\/a> with the US government.<\/p>\n

However, the US representative for Virginia\u2019s 8th<\/sup> congressional district, Don Beyer, warns the deal may backfire \u2013 it\u2019s \u201ca major mistake\u201d that violates the Constitution as well, he told CNBC <\/em>today.<\/p>\n

Nvidia stock has been a lucrative investment over the past four months. At the time of writing, it\u2019s up roughly 90% versus its year-to-date low in the first week of April.  <\/p>\n

Why is allowing Nvidia to remain in business with China a mistake?<\/h2>\n

According to Rep Don Beyer, letting Nvidia sell \u201creally good chips\u201d to China is a strategic blunder.<\/p>\n

\u201cWe\u2019re in a competition with China \u2013 and yet, we\u2019re helping them,\u201d he noted, pointing to the risk of strengthening a geopolitical rival that\u2019s already not far behind in terms of AI capabilities.<\/p>\n

Beyer also argued that the 15% revenue-sharing arrangement violates the US Constitution<\/a>, which prohibits export taxes.<\/p>\n

While technically framed as a licensing condition, critics \u2013 including trade lawyers and national security experts \u2013 say the deal functions as a de facto export tax, setting a dangerous precedent for monetising national security policy.<\/p>\n

US tech setting up data centres in Middle East is also a bad idea<\/h2>\n

On Tuesday, Rep. Don Beyer also raised alarms on US tech enabling data center expansion in non-democratic Middle Eastern countries.<\/p>\n

\u201cIt\u2019s one thing to have all the data in a democracy, but in a non-democracy, who knows what that data will be used for,\u201d he said on Squawk Box<\/em><\/a>. The lawmaker\u2019s concern centres on surveillance, censorship, and authoritarian control.<\/p>\n

With AI infrastructure increasingly reliant on cloud and data center architecture \u2013 exporting such capabilities to regimes with opaque governance could empower digital repression.<\/p>\n

Beyer\u2019s comments reflect a growing unease about tech diplomacy without democratic safeguards.<\/p>\n

Does the world need more oversight and regulations for AI<\/h2>\n

All in all, Beyer\u2019s message was a call for guardrails. He cited experts like Dario Amodei, the chief executive of Anthropic, who recently warned that AI could eliminate as much as half of the entry-level white-collar jobs within the next five years.<\/p>\n

But the deeper concern, according to the US Representative,  is existential since \u201cwe have no idea how to align artificial superintelligence values with our values.\u201d<\/p>\n

He urged proactive regulation and international engagement, including with Beijing, to prevent runaway AI development. \u201cIt doesn\u2019t mean we stop, but it does mean we start to think about guardrails,\u201d he concluded.<\/p>\n

Does that mean you should sell Nvidia stock?<\/h2>\n

Despite the US lawmaker\u2019s warning, AI stocks have done exceptionally well in recent months, and Wall Street believes space leaders like Nvidia shares will continue to rip higher moving forward.<\/p>\n

According to The Wall Street Journal<\/em>, the consensus rating on NVDA stock<\/a> remains at \u201cbuy\u201d with price targets going as high as $250, indicating potential upside of another 40% from here.  <\/p>\n

The post Trump letting Nvidia sell chips to China is ‘a major mistake’: here’s why<\/a> appeared first on Invezz<\/a><\/p>\n

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President Donald Trump has recently greenlit Nvidia Corp (NASDAQ: NVDA) to resume selling its chips to China on the condition that it\u2019ll share 15% of China revenue with the US government.However, the US representative for Virginia\u2019s 8th congressional district, Don Beyer, warns the deal may backfire \u2013 it\u2019s \u201ca major mistake\u201d that violates the Constitution…<\/p>\n","protected":false},"author":1,"featured_media":1744,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1743"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1744"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}