Mark Cuban and Kevin O’Leary have weighed in on President Donald Trump’s controversial deal with Nvidia Corporation (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD), with Cuban praising it as a progressive move and O’Leary calling it corporate “blackmail.”
Cuban Calls Trump's Deal A ‘Billionaire's Tax'
On Monday, billionaire entrepreneur Cuban took to X, formerly Twitter and applauded President Trump's 15% revenue-sharing agreement with Nvidia and AMD, viewing it as a bold and progressive form of taxation.
Cuban suggested that the move was something Democratic figures like Sen. Elizabeth Warren (D-Mass.), Rep. Alexandria Ocasio-Cortez (D-N.Y.) and Sen. Bernie Sanders (I-VT) could never pull off, despite their advocacy for wealth redistribution.
Every Democrat should be thanking POTUS for doing what they've dreamed of doing but never could – creating a sales tax on two of the biggest semi-companies in the country, Cuban wrote.
He added that the move opened the door for a broader sales tax on export licenses, something he saw as a "progressive dream."
Cuban highlighted that Trump's method of levying taxes on the richest companies, which are controlled by billionaires, showed a strong understanding of leverage.
"He took 15 pct of equity from a company. That is the ULTIMATE wealth tax. He diluted every shareholder, upfront, regardless of their net worth. Lol. A progressive dream," Cuban remarked.
Cuban also acknowledged the irony of the situation, suggesting that Democrats should celebrate the move for its progressive tax structure.
But, O’Leary Calls Nvidia-AMD Deal ‘Blackmail'
Kevin O’Leary, another prominent investor, criticized the deal on CNN. He described the 15% payment as a creative move, likening it to a "form of blackmail" but ultimately viewing it as no different from a tariff.
He said it was a unique and direct approach to exerting pressure on companies to comply with government policy.
"This industrial policy of taxing a specific company to have the right granted by the government to ship a product to a specific country that, for lack of better words, is a little funky chicken. But at the same time, it’s a form of tariffs," he said.
The shark, who is also known as "Mr Wonderful," added that while it may generate revenue, it's a form of coercion that raises ethical questions. He also acknowledged that the move would likely benefit the companies in the short term, as it generates incremental cash flow.
Peter Schiff And The Kobeissi Letter Slam Nvidia, AMD's 15% Deal
Economist Peter Schiff and market commentator The Kobeissi Letter have also criticized Nvidia and AMD's agreement to pay 15% of their China chip revenues to the U.S. government as part of an export license deal.
Schiff called it unconstitutional and a "federal shakedown," objecting to the revenue-based payment. The Kobeissi Letter warned that it signals a major shift in trade negotiations, with the Trump administration pursuing company-specific deals and marking a new phase in the trade war.
The agreement is a prerequisite for Nvidia and AMD to sell their advanced AI chips, the H20 and MI308, respectively.
Price Action: On Monday, Nvidia's stock slipped 0.32%, while AMD dipped 0.28%, according to data from Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that Nvidia maintains a strong upward price trend across short, medium and long-term timeframes. Additional performance details are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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