NVIDIA Corp (NVDA) Agrees 15% Charge on H20 Sales to China

NVIDIA Corporation (NASDAQ:NVDA) is one of the top tech stocks with a strong return on equity. On August 10, it was reported that the company had agreed to pay 15% of its Chinese revenues to the US government as part of an agreement to secure export licenses.

Under the terms of the agreement, Nvidia is to pay 15% of its revenues from H20 chip sales in China to the US government. The H20 chip was specifically developed for the Chinese market in response to the US export restrictions imposed by the Biden administration in 2023. The Trump administration effectively banned its sale in April.

The reprieve to sell the H20 chip to China comes after Chief Executive Officer Jensen Huang spent months lobbying both sides for the resumption of sales to China. The US Commerce Department has reportedly started issuing H20 export licenses days after the CEO met with President Donald Trump.

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor giant that produces graphics processing units used in video games, data centers, and PCs, among other devices. The company has broadened its use into emerging markets of supercomputing and artificial intelligence. The company has demonstrated its efficiency in utilizing shareholder investments to generate profits, as evidenced by its high return on equity of 115.46%.

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Disclosure: None. This article is originally published at Insider Monkey.