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Breaking: Nvidia (NVDA) in Talks With U.S. to Sell Blackwell AI Chips to China, per Fox — Revenue-Share Proposal | Flash News Detail | Blockchain.News
Latest Update
8/28/2025 1:21:00 PM

Breaking: Nvidia (NVDA) in Talks With U.S. to Sell Blackwell AI Chips to China, per Fox — Revenue-Share Proposal

Breaking: Nvidia (NVDA) in Talks With U.S. to Sell Blackwell AI Chips to China, per Fox — Revenue-Share Proposal

According to @KobeissiLetter, citing Fox, Nvidia (NVDA) is in talks with the U.S. government to sell its Blackwell AI chips to China and is reportedly willing to give the U.S. a portion of revenue from those China sales in exchange for approval (source: The Kobeissi Letter post on X; source: Fox as cited). This report comes against the backdrop of existing U.S. export controls on advanced AI chips to China that set the governing framework for any such transactions (source: U.S. Department of Commerce). No official confirmation from Nvidia or U.S. authorities was included in the post at the time referenced (source: The Kobeissi Letter post on X). Any formal approval or agreement would typically be disclosed by the company or via SEC Form 8-K if deemed material, which traders can monitor for confirmation (source: U.S. Securities and Exchange Commission, Form 8-K disclosure rules).

Source

Analysis

In a significant development for the tech and AI sectors, Nvidia ($NVDA) is reportedly in talks with the US government to gain approval for selling its advanced Blackwell AI chips to China. According to The Kobeissi Letter, Nvidia is willing to share a portion of the sales revenue from these chips with the US in exchange for the green light. This news, shared on August 28, 2025, could reshape global AI hardware distribution and has immediate implications for traders in both stock and cryptocurrency markets.

Nvidia's Strategic Move and Potential Stock Market Impact

The proposed deal highlights Nvidia's efforts to navigate stringent US export restrictions on advanced semiconductors to China, amid ongoing geopolitical tensions. If approved, this could unlock a massive market for Nvidia's Blackwell chips, which are pivotal for AI training and inference tasks. From a trading perspective, $NVDA stock has historically reacted positively to expansions in international sales. Traders should monitor key support levels around $110 and resistance at $130, based on recent trading patterns. A breakthrough could signal a bullish trend, potentially driving the stock toward all-time highs. Institutional investors are likely watching closely, as this could boost Nvidia's revenue streams and enhance its dominance in the AI chip market.

Correlations to Cryptocurrency Markets and AI Tokens

Shifting focus to the crypto space, Nvidia's advancements in AI hardware often correlate with movements in AI-related cryptocurrencies. Tokens like FET (Fetch.ai), RNDR (Render), and AGIX (SingularityNET) could see increased interest if Nvidia expands its AI chip sales, as these projects rely on high-performance computing for decentralized AI applications. For instance, Render Network leverages GPU power for rendering tasks, and positive news from Nvidia might fuel buying pressure in RNDR/USD pairs. Traders should note that during past Nvidia earnings beats, AI crypto tokens have experienced volatility spikes, with average 24-hour gains of 5-10% in correlated assets. On-chain metrics, such as rising transaction volumes on these networks, could provide early signals of market sentiment shifting toward optimism.

Beyond direct correlations, this development might influence broader crypto market dynamics, including Bitcoin (BTC) and Ethereum (ETH). As AI integrates deeper into blockchain technologies, institutional flows into AI-themed investments could indirectly support ETH, given its role in smart contracts for AI dApps. Trading opportunities may arise in cross-market plays, such as longing NVDA calls while hedging with BTC futures. However, risks remain high due to regulatory uncertainties; a denial of the deal could trigger sharp sell-offs, with $NVDA potentially testing lower supports at $100. Volume analysis is crucial here—look for surges above average daily volumes of 300 million shares as confirmation of bullish momentum.

Trading Strategies and Broader Market Implications

For active traders, this news presents actionable insights. Consider scalping opportunities on $NVDA if intraday volatility increases post-announcement, targeting quick profits from price swings. In the crypto realm, pairing this with AI token breakouts could amplify returns; for example, if RNDR breaks above $1.50 resistance, it might rally to $2.00 amid positive sentiment. Market indicators like the RSI for NVDA, currently hovering around 60, suggest room for upside without overbought conditions. Broader implications include potential shifts in global supply chains, benefiting altcoins tied to semiconductor tech. Always incorporate stop-losses to manage downside risks, especially with geopolitical news driving uncertainty.

Overall, this Nvidia-China deal negotiation underscores the intertwined nature of AI, stocks, and crypto. Traders should stay vigilant for updates from official channels, as approval could catalyze a rally across related assets. By focusing on concrete data points like price levels and volumes, investors can position themselves advantageously in this evolving landscape.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.