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2w ago

U.S. Imposes 25% Tariff on Select AI Chips as Nvidia Seals $20 Billion Groq Pact and Street Turns More Bullish

Wall Street describes the levy as largely procedural, with AI infrastructure spending still running hot.

The HB10 chip powering the DGX Spark may soon find its way into laptops.
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Overview

  • President Donald Trump’s administration set a 25% tariff on AMD’s MI325X and Nvidia’s H200, with exemptions for startups, domestic data centers, the public sector, and chips used to expand U.S. manufacturing.
  • Wolfe Research says the levy functions as a pre-arranged payment framework for permitted exports, noting Nvidia’s China shipments still hinge on Chinese approval and that AMD is prioritizing capacity elsewhere.
  • Nvidia announced a $20 billion nonexclusive licensing deal to use Groq’s inference LPU technology, with founder Jonathan Ross, president Sunny Madra, and other staff joining Nvidia.
  • Nvidia and Eli Lilly unveiled a Bay Area co‑innovation lab for AI drug discovery backed by up to $1 billion over five years for compute, infrastructure, and talent.
  • RBC initiated Nvidia at Outperform citing a $500B+ backlog and ecosystem strength, started Micron at Outperform with a $425 target and $50+ peak EPS potential on HBM, and Wells Fargo reaffirmed AMD Overweight with a $345 target.