The arrangement crafted by the Trump administration is “unusual,” analysts told CNBC, but underscores the president's transactional nature.

Nvidia Corporation (NASDAQ: NVDA) is one of the best big tech stocks to buy right now. The company again came under the radar after the Trump administration asked it to pay 15% sales tax on certain semiconductors it sells to China. However, the impact appears to be quite manageable for the company.

Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the U.S. government. Trump said he also negotiated a similar deal with chipmaker Advanced Micro Devices (AMD).

Trump said on Monday that he might allow Nvidia to sell a more advanced artificial intelligence chip in China based on the chipmaker’s latest and most advanced Blackwell platform. The performance of H20 chips sold to China is restricted compared with those more advanced processors sold to customers in the US.

Authorities have summoned domestic companies like Tencent and ByteDance over their purchases of Nvidia's H20 chips, asking them to explain their reasons and expressed concerns over information risks.

Nvidia can sell its AI chips in China, and hyperscalers are spending more heavily on data center infrastructure than Wall Street anticipated.

Harsh Kumar, Piper Sandler senior research analyst, joins 'The Exchange' to discuss if policy changes for Nvidia mean a lot for the company, how much of a moat Nvidia has overall and much more.