The US government will use its 15% sales tax on NVIDIA and AMD chips sold to China to pay down US debt, in a new strategic move from the Trump admin.

Wedbush said the U.S. deal to allow Nvidia (NVDA) and AMD (AMD) to secure export licenses to sell their AI chips in China "takes down a key barrier of growth in the AI Revolution."

Treasury Secretary Scott Bessent said the recent deal to allow Nvidia Corp. and Advanced Micro Devices Inc. to resume lower-end AI chip sales to China, on the condition they give the U.S.