In a groundbreaking development that could reshape the semiconductor industry and influence global tech markets, Nvidia (NVDA) and AMD (AMD) have reportedly struck an unusual agreement with the US government under President Trump. According to @KobeissiLetter, these chip giants have agreed to hand over 15% of their revenues from chip sales in China in exchange for export licenses. This move, announced on August 10, 2025, highlights escalating US-China trade tensions and the strategic importance of advanced chips in AI and computing. For traders, this news injects fresh volatility into NVDA and AMD stocks, while also rippling into cryptocurrency markets, particularly AI-related tokens that rely on GPU technology.

Impact on NVDA and AMD Stock Trading Strategies

From a trading perspective, NVDA stock, which has been a powerhouse in the AI boom, could see immediate price swings following this agreement. Historically, NVDA has shown sensitivity to US export policies; for instance, previous restrictions led to a 10% drop in share price within days. Traders should monitor key support levels around $110-$115 per share, with resistance at $130, based on recent trading patterns. If the deal stabilizes export flows, it might boost investor confidence, potentially driving NVDA towards its 52-week high of $140. Conversely, any perceived revenue hit from the 15% levy could pressure margins, leading to bearish sentiment. Volume analysis is crucial here—look for spikes above average daily volumes of 300 million shares to confirm breakout trends. For AMD, trading around $150, this agreement might offer a comparative advantage if it eases competition in China, where AMD has been gaining market share. Options traders could explore straddles to capitalize on expected volatility, with implied volatility likely surging post-announcement.

Crypto Market Correlations and AI Token Opportunities

The crypto angle is particularly intriguing, as Nvidia and AMD chips power much of the AI infrastructure underpinning blockchain projects. Tokens like Fetch.ai (FET), Render (RNDR), and SingularityNET (AGIX) often correlate with NVDA performance due to their reliance on GPU computing for AI models. If this deal ensures steady chip supplies to China, it could enhance global AI adoption, indirectly boosting these tokens. For example, FET has historically rallied 15-20% on positive NVDA news, with trading volumes jumping to $100 million daily. Current market sentiment suggests monitoring Bitcoin (BTC) and Ethereum (ETH) as bellwethers; a dip in BTC below $60,000 might amplify downside risks for AI cryptos. Institutional flows are key—watch for ETF inflows into tech stocks, which often spill over to crypto via funds like those holding NVDA alongside digital assets. Trading pairs such as FET/USDT on exchanges could see increased liquidity, offering scalping opportunities around the 24-hour high of $1.50.

Broadening the analysis, this agreement underscores broader market implications, including potential shifts in supply chains and geopolitical risks. Traders should consider hedging strategies, such as pairing NVDA longs with puts on Chinese tech indices, to mitigate uncertainties. On-chain metrics for AI tokens reveal growing holder activity; for RNDR, active addresses have increased 25% in the last month, signaling accumulation. If US export licenses lead to higher chip availability, it might accelerate AI-driven crypto projects, fostering bullish trends. However, the 15% revenue share could inflate costs, indirectly affecting mining efficiency for proof-of-work coins like BTC. Overall, this news presents a mix of risks and rewards—savvy traders will focus on real-time indicators like RSI levels above 70 for overbought signals on NVDA, while eyeing cross-market correlations for diversified portfolios.

In summary, this unusual pact between Nvidia, AMD, and the US government not only affects stock prices but also reverberates through crypto markets tied to AI innovation. By staying attuned to price movements, volume surges, and sentiment shifts, traders can uncover profitable opportunities amid the volatility. As always, combining technical analysis with fundamental insights will be essential for navigating these dynamic markets.