NVIDIA Corp (NVDA) Warns of Legal Risks on Missing Regulations for US 15% AI Chips Fees

NVIDIA Corporation (NASDAQ:NVDA) is one of the top stock picks in Ken Griffin’s portfolio. On August 28, the company’s Chief Financial Officer, Colette Kress, reiterated that the US government has yet to formalize the 15% tariff payment on Chinese AI sales.

Consequently, the company won’t be able to make any payments as it will pose legal risks. The remarks come as the US government has failed to implement regulations that require the chipmaker to make the payments. If the proposed 15% commission on AI chips is not codified, Nvidia will be able to proceed with China sales without paying any commission.

“We have been communicating,” she said. “If nothing shows up, I’ve got licenses. I don’t have to do this 15% until I see something that is a true regulatory document.”

Nvidia finds itself at the center of a geopolitical standoff between Beijing and Washington over the sale of chips needed to power artificial intelligence models. Previous restrictions have blocked the US chipmaker from selling its AI processors to China, denying it a key revenue stream.

NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor company that provides graphics, compute, and networking solutions. The Compute & Networking segment includes its Data Centre accelerated computing platforms, artificial intelligence solutions and software, networking solutions, automotive platforms, and autonomous and electric vehicle solutions.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Goldman Sachs Tech Stocks: Top 10 Stocks to Buy Now and 10 Must-Buy Penny Stocks to Invest In.

Disclosure: None. This article is originally published at Insider Monkey.