Senators mainly cite the national security concerns of sending AI tech to China, but also note that the US Constitution says, 'No Tax or Duty shall be laid on Articles exported from any State.'

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.

Tencent Holdings Ltd. on Wednesday floated enough artificial intelligence (AI) chip stockpile and many alternatives, playing down the potential impact of pause in supply of Nvidia Corporation's H20 chips.

President Trump has confirmed that the US government will receive 15% of the sale of Nvidia's ( NVDA) H20 chips to China. The move, along with a similar one that will see rival Advanced Micro Devices ( AMD) turn over 15% of its China revenue, adds an interesting wrinkle to Nvidia's upcoming earnings schedule for Aug. 27.

Just hours after President Trump confirmed a new deal that will see Nvidia pay 15% of sales revenue to the government in exchange for H20 export licenses, a new Bloomberg report claims that China's government has been urging local companies to avoid using the chips for weeks.