Nvidia’s Huang Scores a Win With Trump. The Lesson for Netflix and Paramount.

Nvidia CEO Jensen Huang (R) shakes hands with President Donald Trump (JIM WATSON/AFP via Getty Images)

Just how persuasive is Nvidia CEO Jensen Huang? He has scored another victory for his chipmaking company winning over President Donald Trump, but now he needs to woo Beijing too. It’s a reminder how closely business is intertwined with politics.

Less than a week after Huang visited President Donald Trump, Nvidia has won permission to sell H200 chips to China. The Nvidia chief’s arguments that it is wise to make China dependent on American hardware look to have paid off. Agreeing to a 25% cut on sales for the U.S. government didn’t hurt either.

But securing the White House’s backing is only part of the solution. Nvidia still has to persuade China’s government to allow domestic companies to purchase its processors. Trump says Chinese leader Xi Jinping responded positively to the proposal, which involves more powerful artificial-intelligence chips than were previously permitted for export.

The appetite from China’s technology companies is definitely there. The Justice Department said on Monday it was cracking down on chip smuggling, with one businessman pleading guilty to smuggling more than $160 million worth of Nvidia H100 and H200 hardware. But that means Huang still has more persuading to do, with some lawmakers pushing for tougher measures to track where semiconductors go.

A prize asset for corporations is a CEO with a sure touch in Washington. The lobbying skills of the heads of Netflix and Paramount Skydance are about to be tested as they go head-to-head in a bidding war for Warner Bros. Discovery . Convincing regulators about the competitive merits of their respective merger plans is as important as winning over shareholders.

If Netflix’s Ted Sarandos and Paramount’s David Ellison need any tips, they could do worse than going to Huang.

—Adam Clark

*** What’s Ahead for Markets in 2026? From “Liberation Day” tariffs to torrid rallies in AI stocks and gold, this year has been full of surprises. Join us on Dec. 11 at noon for discussions with investment strategists and money managers about the outlook for the economy and markets in 2026—and how to position your portfolio for success. Sign up here.

Get more of the journalism you love. Choose Barron’s as a preferred source in Google.

***

Trump Approves Nvidia H200 Chip Sales to China

President Donald Trump plans to allow Nvidia to sell a more advanced AI chip to China. That’s good news for investors, following months of uncertainty about whether the tech giant would be able to carry on making money from the world’s second largest economy.

• “I have informed President Xi, of China, that the United States will allow NVIDIA to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security,” Trump said late Monday in a post on Truth Social. Nvidia didn’t immediately respond to a request for comment.
• Trump seemed to imply Nvidia will pay a 25% fee on any H200 sales to China, adding: “$25% will be paid to the United States of America.” That’s higher than the 15% rate Trump spoke about in August, when discussing the less advanced H20 AI chip in August.
• If the fee is imposed, it would be another example of the president striking an unusual agreement with a private company to make money for the government. Trump said the Commerce Department will finalize the details, and the government will allow fellow chip makers Advanced Micro Devices and Intel to do similar deals.

What’s Next: China has effectively banned the country’s technology companies from buying the H20. Trump said on Monday that President Xi had “responded positively,” but it remains to be seen whether Beijing will allow Nvidia to sell the H200 in the country. Nvidia has said its current financial guidance doesn’t assume any revenue from China.

— Tae Kim and George Glover

***

Paramount Raises Drama With Hostile Offer for Warner Bros.

Paramount made a hostile offer for Warner Bros. Discovery on Monday—the latest twist in an ongoing takeover saga that is likely to upend the Hollywood pecking order. But both Netflix’s bid, and Paramount’s rival offer drew the attention of the White House.

• Paramount said in a statement that its all-cash, $30-a-share offer for all of Warner Discovery was a better deal than Netflix’s for shareholders and more likely to be cleared by regulators. Paramount’s offer includes investments from the sovereign-wealth funds of Saudi Arabia, Abu Dhabi, and Qatar. President Trump’s son-in-law Jared Kushner will also participate via his Affinity Partners fund.
• The hostile bid came days after Netflix had agreed to buy Warner’s streaming and studios divisions. Doubts about the Netflix-Warner deal emerged over the weekend, with Trump warning on Sunday that the acquisition “could be a problem” as it would give the streamer “a very big market share.”
• Trump then criticized Paramount, which owns the CBS television station, on Monday. He slammed the news show 60 Minutes for airing an interview with Rep. Marjorie Taylor Greene, who said the president had betrayed his voters. It wasn’t clear if that was a reaction to Paramount’s bid.
• Netflix may have to make an even more lucrative offer to one-up Paramount’s hostile bid. If Warner walks away from the deal, or accepts a rival offer from a rival party, it will owe Netflix $2.8 billion.

What’s Next: Warner has until Dec. 22 to decide if Paramount’s bid is a superior offer to Netflix’s deal. It could all come down to what investors think Warner Discovery’s legacy networks are worth. Paramount said on a conference call that the networks are worth $1 a share.

— George Glover and Adam Levine

***

Trump Unveils Farm Aid as Sector Battles Costs, Uncertainty

Bidding to aid farmers hit by the effects of his import tariffs, and foreign retaliation against American agricultural products that resulted from them, President Trump unveiled his $12 billion farm aid plan. It is part of his pitch to boost affordability as farmers face rising costs, trade uncertainty, and falling crop prices.

• The plan includes $11 billion in one-time bridge payments. It is seen helping hard-hit soybean farmers, who need the funds to finance the planting of next year’s crop. China suspended U.S. soybean purchases when the trade war erupted, but recently resumed them after Trump met with President Xi Jinping.
• Another $1 billion will provide relief for farmers in commodities not covered by the bridge loan program, including specialty crops and sugar, according to the Agriculture Department. The Trump administration said it has issued $30 billion in farm aid since January.
• The funds could help farmers buy products such as fertilizer, seeds, and crop protection from companies like Mosaic, Corteva, and FMC. Trump also discussed a plan to eliminate environmental regulation on farm equipment such as tractors if manufacturers lower their prices, cutting the cost to make and buy it.
• Agricultural machinery maker Deere told investors it is aiming for 10% equipment sales growth from 2025 to 2030, a rate that implies $63 billion in sales by fiscal year 2030. That beats current expectations for sales growth of 8%, but that estimate is for fiscal years 2025 to 2028.

What’s Next: Deere is counting on technology-enabled recurring services to achieve its goals. AI-enabled machines can help farmers optimize planting to improve crop yields and reduce costs. Today, Deere has about 500 million “engaged acres,” and it wants to get that to 600 million acres by 2030.

— Al Root and Janet H. Cho

***

Berkshire Hathaway Preps for Life After Warren Buffett

Berkshire Hathaway’s longtime CEO Warren Buffett is stepping away from the role this year, and there is a management shake-up under way. Notably, one of his key investing lieutenants and Geico CEO Todd Combs is leaving the conglomerate, as is Berkshire’s longstanding CFO.

• Buffett is staying on as chairman but will be succeeded as CEO by Greg Abel, Berkshire’s vice chairman and head of the company’s non-insurance operations, on Jan. 1. Combs, who alongside Ted Weschler helped invest part of Berkshire’s massive cash pile, is departing for a new role at JPMorgan.
• There had been some expectation that Abel would expand Berkshire’s lean management team, and Monday’s announcements outline them. NetJets CEO Adam Johnson is now president of Berkshire’s consumer products, service, and retailing business, while continuing in his role at NetJets. This is a newly created position.
• In addition, Nancy Pierce, currently Geico’s chief operating officer, will take over from Combs as Geico CEO, a business Buffett credited Combs with turning around. And CFO Marc Hamburg will hand the role to Charles Chang next June and then retire in June 2027 after 40 years
• Combs is taking a job running JPMorgan’s new $10 billion initiative to invest in national security. His departure from Berkshire leaves people questioning who will invest the conglomerate’s cash. Combs was believed to be behind Berkshire’s investments in tech stocks such as Snowflake.

What’s Next: Berkshire’s remaining non-insurance businesses—including industrial products, building products, BNSF, Berkshire Hathaway Energy, Pilot, and McLane—will remain under Abel’s direct oversight as he becomes Berkshire’s president and CEO.

— Andrew Bary, Callum Keown, and Janet H. Cho

***

PepsiCo Unveils Plan to Boost Sales, Cut Costs After Elliott Engagement

Three months after the activist fund Elliott Investment Management announced a $4 billion stake, urging it to boost shareholder value, PepsiCo unveiled measures to boost sales growth, cut costs, and increase profits starting in 2026. This includes paring its product list and simplifying ingredients.

• The beverage and snack giant said its North American foods operation will play a crucial role. Plans include implementing affordable price tiers to stimulate sales and increase how frequently consumers buy its mainstream brands, including Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, and Mountain Dew.
• It plans to remove artificial colors and flavors, offer simpler ingredients, and increase protein, fiber, and whole grains in some of its products. PepsiCo also plans to “aggressively” reduce its operating costs. It recently closed three manufacturing plants and shut down several manufacturing lines this year.
• The changes are expected to deliver full-year organic growth of 2% to 4% in 2026, and be on the high end of that range in the second half of 2026. Acquisitions and currency exchange rates are expected to add up to net revenue growth of 4% to 6% in fiscal 2026.
• Elliott partner Marc Steinberg said the company would conduct a comprehensive review of its North America supply chain and go-to-market systems, and has committed to refreshing its board. He added the moves “will create substantial value for shareholders.”

What’s Next: PepsiCo expects core earnings per share to increase approximately 5% to 7% in fiscal 2026, saying it aims to deliver a record year of productivity savings next year, benefiting in part from the actions taken in the second half of 2025.

— Janet H. Cho

***

—Newsletter edited by Liz Moyer, Rupert Steiner