Wedbush: The US easing restrictions on the export of AI chips to China, benefiting US tech stocks.

The US government recently reached an agreement allowing NVIDIA Corporation (NVDA.US) and AMD (AMD.US) to sell their artificial intelligence chips in China through export licenses, with the condition of sharing 15% of the sales revenue with the US side. This policy adjustment is seen by Wedbush analyst Daniel Ives and his team as "removing a key obstacle to the growth of the AI revolution" and is seen as a positive signal for AI-related tech stocks to rise in the next 12 to 18 months. According to the agreement, NVIDIA Corporation will contribute 15% of the sales revenue from its H20 AI accelerator in the Chinese market, while AMD will need to set aside the same proportion from the revenue of its MI308 chip. The Ives team points out that while the deal has sparked controversy in the tech and legal spheres, its actual effect will significantly benefit the overall development of the US tech ecosystem and accelerate the global AI revolution. The analysis emphasizes that if the US continues to restrict the export of H20 chips, Huawei could potentially gain about $15 billion in annual revenue from the AI chip market, giving China a significant competitive advantage in the field of AI. The Ives team believes that the Trump administration needs to strike a balance between "national security policy" and "supporting the globalization of top tech companies" to avoid damaging the global competitiveness of US businesses due to excessive restrictions. It is worth noting that for the first time in 30 years, the Ives team has put forward the assertion that the US leads in the field of technology. This is based on the fact that the global AI revolution is currently led by US companies such as NVIDIA Corporation, Microsoft Corporation (MSFT.US), Palantir (PLTR.US), OpenAI, Alphabet Inc. Class C (GOOGL.US), Meta (META.US), Amazon.com, Inc. (AMZN.US), and AMD. Meanwhile, Chinese tech giants such as Huawei, Alibaba Group Holding Limited Sponsored ADR (BABA.US), Baidu Inc Sponsored ADR Class A (BIDU.US), Tencent, Xiaomi, etc., are accelerating their technological catch-up, forming a "two-way competition" scenario. The analyst specifically cites the Middle East as an example, pointing out that countries like Saudi Arabia and the United Arab Emirates are building AI strategic infrastructure, with US companies like NVIDIA Corporation, Microsoft Corporation, Alphabet Inc. Class C leading the chip supply and data center construction. The Ives team concludes that this is a "global market share battle in the fourth industrial revolution led by AI," and US tech companies must pay a reasonable price (such as a 15% revenue split) to gain access to China and other major markets in order to consolidate their global leadership position.