Bessent Says Nvidia, AMD Deals Could Be a 'Model' | Bloomberg Tech 8/13/2025

US Treasury Secretary Scott Bessent indicated that the recent agreement allowing Nvidia and AMD to sell specific AI chips to China could establish a 'model' for future technology trade policies. This development comes as Tencent shares rose following a revenue beat and outlined AI initiatives, while CoreWeave's CEO discussed strategies to scale operations to meet growing AI sector demand.

Analysis

Comments from US Treasury Secretary Scott Bessent suggesting the US deal allowing Nvidia (NVDA) and AMD (AMD) to sell specific AI chips to China could be a 'model' for future policy marks a significant potential shift in the US-China tech trade landscape. This development introduces a more predictable regulatory framework, potentially mitigating a key geopolitical risk for US semiconductor firms by establishing a pathway to continue servicing the large Chinese market, albeit with restrictions on the most advanced technologies. The context is particularly favorable, as this policy signal coincides with a revenue beat and stated AI ambitions from Chinese tech giant Tencent, which confirms robust and immediate demand for AI hardware in the region. Simultaneously, comments from CoreWeave's (CRWV) CEO on scaling to meet AI demand highlight the powerful secular growth trend underpinning the entire global AI infrastructure sector, reinforcing the fundamental tailwinds for component suppliers.

Key Decisions for Investors

• Investors should consider re-evaluating the geopolitical risk premium assigned to Nvidia and AMD, as a formalized 'model' for China sales could de-risk a significant portion of their revenue outlook.
• The strong results from Tencent serve as a positive read-through for AI chip demand, suggesting investors should maintain or build exposure to the broader AI value chain, from chip designers to infrastructure providers.
• It is crucial to monitor for official guidance from the US Treasury and Commerce Departments regarding the specifics of this new policy model, as its final form will determine the true long-term impact on semiconductor revenues and market access.