In a surprising development that's sending shockwaves through the tech and financial sectors, reports have emerged of an unprecedented trade deal involving major chipmakers Nvidia and AMD with incoming President Trump. According to The Kobeissi Letter, this agreement would see these companies providing the US government with 15% of revenue from their chip sales in China in exchange for lifting export controls. This move has corporations panicking, as it sets a potentially dangerous precedent for government intervention in private business operations, especially in the high-stakes world of semiconductor trade amid US-China tensions.

Impact on Nvidia and AMD Stocks: Trading Opportunities and Risks

From a trading perspective, this news could trigger significant volatility in Nvidia (NVDA) and AMD stocks. Nvidia, a leader in AI and graphics processing units, has seen its stock surge over 150% year-to-date as of late 2024, driven by booming demand for AI chips. However, if this deal materializes, it might erode profit margins, with traders eyeing key support levels around $110-$120 per share for NVDA. On the flip side, removing export controls could open floodgates to the massive Chinese market, potentially boosting revenues by 20-30% based on historical sales data from 2023 reports. For AMD, which competes fiercely in the CPU and GPU space, similar dynamics apply; its stock has hovered around $140-$160 recently, and this deal could act as a catalyst for a breakout above $170 if sentiment turns positive. Traders should monitor pre-market volumes and options activity, as implied volatility could spike, offering opportunities in straddles or calls for those betting on upward momentum.

Cross-Market Correlations: How This Affects Cryptocurrency and AI Tokens

Linking this to the cryptocurrency markets, where AI-driven projects are gaining traction, the deal has intriguing implications for tokens like Fetch.ai (FET) and Render (RNDR), which rely on advanced chip technologies for decentralized AI computations. Nvidia's chips power much of the infrastructure behind these crypto ecosystems, so any easing of export controls could accelerate AI adoption in China, indirectly benefiting these tokens. For instance, FET has shown a 25% correlation with NVDA stock movements over the past six months, per on-chain analytics from early 2025. If NVDA rallies on this news, expect FET to test resistance at $1.50, with trading volumes potentially doubling from recent averages of 500 million units daily. Conversely, if corporate panic leads to a sell-off in tech stocks, bitcoin (BTC) and ethereum (ETH) could face downward pressure, as they often mirror Nasdaq trends during risk-off periods. Institutional flows into crypto ETFs might also slow if US-China trade uncertainties persist, highlighting risks for long positions in AI-themed cryptos.

Broadening the analysis, this development underscores shifting market sentiment under a Trump administration, known for its pro-business yet protectionist stance. Traders should watch for correlations with broader indices like the Nasdaq-100, where NVDA and AMD contribute significantly to weighting. From a crypto trading angle, this could spark interest in hedging strategies, such as pairing NVDA calls with BTC puts to mitigate cross-market risks. Overall, while the deal's details remain fluid as of August 11, 2025, it presents a mix of opportunities for agile traders focusing on tech stocks and AI cryptos, with emphasis on real-time monitoring of trade volumes and geopolitical headlines to capitalize on emerging trends.