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Velocity Micro Raptor Z95A Gaming PC Review: What Leaving It to the Pros Looks Like

Velocity Micro Raptor Z95A Gaming PC Review: What Leaving It to the Pros Looks Like

CNET2 days ago
Velocity Micro Raptor Z95A Buy at Velocity Micro Pros Excellent gaming performance
Tidy interior
Ample upgrade options Cons Considerably more expensive than DIY
So-so front connections
Velocity Micro Raptor Z95A
Buy at Velocity Micro
If you want an extreme gaming PC without bloatware or the tedious work of configuring and building it yourself, the Velocity Micro SX3 Raptor Z95A stands out as a compelling option. It's pricey, but the folks at custom builder Velocity Micro put together a tidy system using almost exclusively standardized parts, leaving the door open for future upgrades. While it's frequently cheaper to build on your own -- at the very least, you save on the cost of labor -- the Raptor Z95A manages to be fairly competitive with other systems in its class, like the $3,899 Corsair Vengeance a7400 or $4,699 Vengeance i8200, though it leaves room to be undercut by systems like this $2,750 Asus ROG G700 with an RTX 5080 of its own.
The Z95A is built around a few core elements that don't change, no matter the configuration. It's centered around a Gigabyte Aorus Pro X870E motherboard and Velocity Micro's SX3 case -- a 55-liter tower that fits ATX and EATX motherboards. Closed-loop liquid cooling is also a central feature, with a 360mm radiator and the option for RGB-lit fans.
Velocity Micro Raptor Z95A Price as reviewed $3,999 Size 55 liter ATX (19.3 x 18.9 x 9.25in/490 x 480 x 235 mm) Motherboard Gigabyte Aorus Pro X870E CPU 2.5GHz AMD Ryzen 7 9800X3D Memory 64GB DDR5-5600 Graphics 16GB Nvidia GeForce RTX 5080 FE Storage 2TB NVMe M.2 PCIe Gen 4 SSD Connections USB 2.0 (x2 rear), USB 3.0 (x2 front), USB-C 3.2 Gen 2x2 (x1 front), USB 3.2 Gen 1 Type-A (x4 rear), USB 3.2 Gen 2 Type-A (x3 rear), USB4 (x2 rear), 3.5mm audio connector (x1 front, x2 rear), Optical S/PDIF (x1 rear), 2.5GbE (x1 rear), Antenna x2, HDMI (x1 on motherboard Networking 2.5GbE, Qualcomm FastConnect 7800 Wi-Fi 7 802.11be, Bluetooth 5.4 Operating system Windows 11 Home 24H2
The configurations start at $2,549. At that price, you get a Ryzen 5 9600X processor with 32GB of DDR5-5200, a 750-watt 80 Plus Bronze power supply, a 1TB Kingston NV3 SSD, and an RTX 5060 8GB. (The "A" in Z95A refers to AMD. There's a Z95i based on Intel CPUs.) Our test configuration bumps up a Ryzen 7 9800X3D with 64GB of DDR5-6000, an 850-watt 80 Plus Gold power supply (an MSI MAG A850GL in this case), a 2TB Samsung 990 Pro SSD and an RTX 5080. When the unit was prepped, it was listed at $3,999, though currently it's sitting at $4,644, partly because of volatile component prices.
That's far from the peak of the pricing. Higher CPU, GPU, memory, and storage options can ramp the price up dramatically. Bumping up our test configuration up to the AMD Ryzen 9 9950X3D and RTX 5090 alone would raise the price to just under $7,000.
Josh Goldman/CNET
If you tried to build it out piece by piece yourself, the configuration would cost roughly $3,000. This would be with largely identical parts, though calls for a different case and cooler, as Velocity Micro uses its own exclusive case and cooler. The extra $1,000 (or $1,644 at the current price) may be worth it for some, as it comes with some peace of mind that the cooling has been done effectively, the hardware is backed with a warranty, and the cable runs are kept neat. If you configure it yourself, you'll also have to bark up the tree of graphics card pricing. Unless you can get your hands on an RTX 5080 FE at its $1,000 retail price (or used), you might see your price leap up considerably.
Clean but not too eye-catching
"Micro" might be in the name, but there's nothing small about the Velocity Micro SX3 Raptor Z95A. The 55L SX3 case sits in the border between an ATX full and mid tower, able to accommodate as large as an E-ATX motherboard. As configured here, there's plenty of room inside the case thanks to the modest proportions of the RTX 5080 Founders Edition; it will be a little tighter with beefier GPU designs.
Josh Goldman/CNET
The case doesn't stand out. It's a rather stately black build with a healthy combination of solid aluminum, perforated aluminum, and a glass side panel. There are a few plastic elements around the front, but they don't stick out or make the case seem cheap. The front grille offers plenty of air for the three intake fans while keeping the perforations small and tightly packed. Hair and dust are still likely to get sucked in, but the grille should keep a good deal out still. Velocity Micro's 360mm radiator attaches at the top of the case and gets three more 120mm fans exhausting through it.
This placement is smart, as it avoids feeding the graphics card pre-warmed air from the radiator. There's one more 120mm exhaust fan in the rear. While this does mean there are more exhaust fans than intakes -- creating the risk of negative pressure that could pull dust into the system from gaps in the case -- the air resistance provided by the radiator should help prevent this. The front fans also have a mostly clear line to the back of the case, so they blow hard enough out the back to keep dust from entering through the less-filtered holes there.
Josh Goldman/CNET
Velocity Micro has done tidy work with the cable management. Cable runs are kept mostly out of sight, appearing only for the short distance they have to travel to plug into the motherboard and other components. Surprisingly, the backside of the case, behind the motherboard, isn't a complete rat's nest either. The lack of pre-wired SATA cable runs is a little disappointing, especially when the system includes two 3.5-inch drive bays in the basement of the case, near the power supply, and two 2.5-inch drive mounting points. I wasn't thrilled to see the hoses for the CPU cooler touching the GPU radiator fins, either. The hoses may degrade from contact with the hot metal, and the airflow out of the back of the GPU is likely impacted.
Josh Goldman/CNET
The motherboard offers a great selection of ports, including 2.5Gb Ethernet to go on top of the Wi-Fi 7 support. The front I/O is limited with just two USB-A ports, a USB-C port, and a 3.5mm combo jack. The case allows the front I/O to sit either on the left side near the bottom or up at the top edge.
The muscle 4K gaming calls for
The Z95A is an extreme-performance system. It pairs some of the most powerful gaming PC hardware on the market for both high-frame-rate and quality 1080p and the horsepower to handle 4K gaming with cranked-up settings. In all of our game benchmarks, the system was happy to run at an average of more than 150fps at 4K, and that's without even tapping into the advanced Nvidia DLSS optimizations available to it, like Frame Generation. Monster Hunter Wilds' benchmark ran at 64fps in 4K with Ultra settings and DLAA enabled. Dialing back to 1080p but leaving other settings unchanged, it hit 120fps on average. That's without Frame Generation, which Monster Hunter Wilds encourages you to enable.
Josh Goldman/CNET
It can also keep on trucking even under demanding loads. In 3DMark's Steel Nomad stress test, the Raptor Z95A sustained its frame rate over 20 runs with a top score of 8285 (83fps) and a lowest score of 8139 points (81fps) -- that's just some run-to-run variability, not a steady decline in performance. The fans kick up a bit to sustain this performance, but they're not very loud or shrill.
Beyond gaming, the Raptor Z95A holds up in high-end everyday operation, and it's well-suited to AI applications with the RTX 5080 tucked inside. It has some of the fastest CPU performance I've seen from systems I've tested for CNET, although some of the top-end Intel chips still rival it for single- and multi-core performance.
Naturally, all this power comes with some heat, and it spits plenty out the top and rear. But the important thing is that it's spitting that heat out. The CPU manages to level off around 52 degrees Celsius, and the GPU levels off around 72.
Working inside the case shouldn't be terribly difficult, as it's quite spacious. And because Velocity Micro has used all standardized components, your upgrade options will be basically limitless. The AM5 platform of the motherboard should be supported for a while yet, and the case has plenty of room for much beefier graphics cards in the future. All in all, it's a fast, solid build that should allow for enough upgradability to offset the high price over time.
Geekbench 6 (single core)
Lenovo LOQ Tower 17IRR9 (90WY0000US)
2,273
Lenovo Legion Tower 5i 26IRB8 (90UT001AUS)
2,427
HP Omen 35L
2,656
Minisforum AtomMan G7 Ti
2,833
Dell XPS 8960
2,948
Lenovo Legion Tower 7i Gen 8 34IRZ8
3,062
Alienware Area-51
3,149
Velocity Micro Raptor Z95A
3,303 Note: Longer bars indicate better performance
Geekbench 6 (multicore)
Lenovo LOQ Tower 17IRR9 (90WY0000US)
9,947
Lenovo Legion Tower 5i 26IRB8 (90UT001AUS)
12,091
HP Omen 35L
12,745
Minisforum AtomMan G7 Ti
16,959
Velocity Micro Raptor Z95A
18,338
Dell XPS 8960
18,699
Lenovo Legion Tower 7i Gen 8 34IRZ8
18,735 Note: Longer bars indicate better performance
Cinebench 2024 CPU (multicore)
Lenovo LOQ Tower 17IRR9 (90WY0000US)
749
Lenovo Legion Tower 5i 26IRB8 (90UT001AUS)
783
HP Omen 35L
961
Velocity Micro Raptor Z95A
1,321
Minisforum AtomMan G7 Ti
1,431
Dell XPS 8960
1,554
Alienware Aurora R16
1,806
Alienware Area-51
2,313 Note: Longer bars indicate better performance
Shadow of the Tomb Raider gaming test (1080p)
Lenovo LOQ Tower 17IRR9 (90WY0000US)
142
Lenovo Legion Tower 5i 26IRB8 (90UT001AUS)
148
Minisforum AtomMan G7 Ti
174
HP Omen 35L
174
Alienware Aurora R16
226
Alienware Area-51
248
Dell XPS 8960
250
Velocity Micro Raptor Z95A
362 Note: Longer bars indicate better performance (FPS)
Guardians of the Galaxy gaming test (4K)
HP Omen 35L
139
Alienware Area-51
177
Velocity Micro Raptor Z95A
187 Note: Longer bars indicate better performance (FPS)
3DMark Fire Strike Ultra
Lenovo LOQ Tower 17IRR9 (90WY0000US)
6,007
Lenovo Legion Tower 5i 26IRB8 (90UT001AUS)
6,232
Minisforum AtomMan G7 Ti
7,277
Alienware Aurora R16
9,927
HP Omen 35L
16,426
Dell XPS 8960
17,525
Alienware Area-51
21,463
Velocity Micro Raptor Z95A
21,665 Note: Longer bars indicate better performance
3DMark Speed Way (DX12 Ultimate)
HP Omen 35L
7,335
Lenovo Legion Tower 7i Gen 8 34IRZ8
7,425
Dell XPS 8960
7,520
Alienware Area-51
8,717
Velocity Micro Raptor Z95A
9,009 Note: Longer bars indicate better performance
The Rift Breaker CPU (1080p)
HP Omen 35L
131
Alienware Aurora R16
163
Alienware Area-51
166
Lenovo Legion Tower 7i Gen 8 34IRZ8
184
Dell XPS 8960
202
Velocity Micro Raptor Z95A
268 Note: Longer bars indicate better performance
Procyon Stable Diffusion XL
Lenovo Legion Tower 7i Gen 8 34IRZ8
3,444
HP Omen 35L
3,656
Velocity Micro Raptor Z95A
4,257 Note: Longer bars indicate better performance
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I swapped a gaming PC for a laptop — can the Acer Predator Helios 18 AI be a true desktop replacement?
I swapped a gaming PC for a laptop — can the Acer Predator Helios 18 AI be a true desktop replacement?

Tom's Guide

time11 hours ago

  • Tom's Guide

I swapped a gaming PC for a laptop — can the Acer Predator Helios 18 AI be a true desktop replacement?

A gaming desktop or laptop, which to get? It's an age-old question I've been pondering lately, especially now that the best gaming laptops come fitted with the latest peak hardware, pushing CPU and GPU power even further. To many, it's an easy choice. The best gaming PCs easily deliver a higher bar for performance, with soaring power output and larger components that can be customized to one's liking. But desktop-class laptops exist for good reason, as they show just how much power can be packed into a mobile device — and it's hard not to be impressed by the performance they dish out. Nothing says that more than the recent Acer Predator Helios 18 AI I've tested. This machine boasts an Intel Core Ultra 9 275HX CPU, Nvidia GeForce RTX 5080 mobile GPU, 32GB of DDR5 RAM and 1TB SSD. It's a monster, and as far as desktop replacements go, it fits the bill. But then there's the juggernaut that is the Acer Predator Orion 7000 I also recently tried out, equipped with an Intel Core Ultra 7 265KF CPU, RTX 5080 desktop GPU, 32GB of DDR5 RAM and 2TB SSD. Now this is a beast, capable of delivering 4K gaming with frame rates as high as 160 FPS (thanks to Nvidia DLSS 4). Equipped with an Intel Core Ultra 9 275HX CPU, RTX 5080 GPU, 32GB of RAM and a 1TB SSD, the Acer Predator Helios 18 AI is a monster of a gaming laptop. It's even fitted with an 18-inch WQXGA (2560 x 1600) mini-LED panel with a 250Hz refresh rate, and if you're a fan of RGB lighting, this machine will impress. Oh, and it can go up to an RTX 5090, 192GB of RAM and a 5TB SSD. Acer Predator Helios 18 AI (RTX 5080): was £3,299 now £3,099 @ Overclockers UK Two mighty gaming machines, one similar price. The Helios 18 AI can be found for $3,099/£3,099, while the Orion 7000 for around £3,299 (no U.S. pricing yet, but I can imagine it being around a similar $3,299). As you can tell, these are premium investments, so I'd be making sure my wallet is happy with my choices. Can both gaming PCs crank up settings to max in the best PC games? You bet your GPU they can, but the real matter here is the difference in performance they deliver. And so, I put the Acer Predator Helios 18 AI to the test — all to see if it really can measure up to the levels of a gaming desktop. Let's dive into the numbers. Look, even a high-end gaming laptop would never be able to beat a tower with desktop-equivalent specs. So realistically, the Predator Helios 18 AI doesn't stand a chance against the Predator Orion 7000, as they're two different classes of gaming machines. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. As you'll find, the benchmarks say it all. With its sizeably impressive 18-inch WQXGA (2560 x 1600) mini-LED panel with a 250Hz refresh rate, the Helios 18 AI can't deliver 4K (3840 x 2160) visuals on its own, so the Orion 7000 already had to put up with a heavier load when I tested its 4K performance. But despite the gap in resolutions, the Helios 18 AI is still stunning to play on during real-time gameplay. And if the extra per-pixel count isn't a huge concern, you'll find it can pull off commendable frame rates. Acer Predator Helios 18 AI (RTX 5080 @ 1600p) Acer Predator Orion 7000 (RTX 5080 @ 4K) Black Myth Wukong (Cinematic) 57 (DLSS off), 167 (DLSS x4) 49 (DLSS off), 166 (DLSS x4) Cyberpunk 2077 (Ray Tracing Ultra) 36.7 (DLSS off), 189 (DLSS x4) 55.48 (DLSS off), 153 (DLSS x4) Doom: The Dark Ages (with path tracing) 39.67 (DLSS off), 127 (DLSS x4) 36.73 (DLSS off), 120 FPS (DLSS x4) Using the built-in benchmarking tools in games like Black Myth Wukong, Cyberpunk 2077 and Doom: The Dark Ages, I saw frame rates skyrocket to nearly 200 FPS with Nvidia's frame generation at x4. That's all at max settings as well, and at 1600p resolution, that's some mighty performance. Those numbers dip without DLSS turned on, though, and I wouldn't want to play Cyberpunk 2077 at just over 30 FPS. Still, I was impressed to see it reach nearly 60 FPS in Black Myth: Wukong, even with the highest Cinematic settings. A valiant effort, but when you consider the Orion 7000 is reaching these numbers at 4K, you can see the clear difference in power. If resolution was taken down a notch, Acer's gaming desktop would wipe the floor with its gaming laptop. Moving over to the 3DMark benchmarking tool, which scores the CPU and GPU's rendering capabilities under different conditions, the difference is made clearer: Acer Predator Helios 18 AI Acer Predator Orion 7000 Steel Nomad 4,532 8,474 Fire Strike 33,993 49,218 Fire Strike Ultra 12,694 21,235 Time Spy 17,341 28,051 Time Spy Extreme 8,977 15,117 Speed Way 4,865 8,674 Port Royal 11,690 21,055 In virtually all the graphics tests, the Helios 18 AI gets just over half the rendering performance of the Orion 7000. This is to be expected, of course, seeing as the RTX 5080 laptop GPU comes with up to 175W max power, while the RTX 5080 desktop GPU can utilize up to 360W power. Either way, the Acer Predator Helios 18 AI still delivers commendable scores, even when compared to our current top 18-inch laptop contender: the Asus ROG Strix Scar 18. And when it comes to the rest of the benchmarks, including Geekbench and SSD speed results, it isn't so far behind that it becomes a joke. Acer Predator Helios 18 AI (Intel Core Ultra 9 275HX) Acer Predator Orion 7000 (Intel Core Ultra 7 265KF) Geekbench 6 single-core 2693 3019 Geekbench 6 multi-core 16324 19526 SSD speed test (MB/s) 2537.01 (read) / 1892.48 (write) 3205.08 (read) / 2557.7 (write) Video editing test (mm:ss) 02:19 02:10 As per the results above, the performance gains you get from a gaming PC like the Acer Predator Orion 7000 over a laptop are substantial, and its value then soars over the Predator Helios 18 AI with their prices in mind. But what if I want to take that kind of gaming power with me on a trip, to a pal's house for a big ol' LAN party, or just to another room? Well, that's the perk of a gaming laptop: portability. The Predator Helios 18 AI may weigh a hefty 7.7 pounds, but it sure beats lugging around the Orion 7000's whopping 35.6 pounds from place to place. With its 18-inch size, it's big enough to act as a generously sized computer, too — but one that's portable. But a laptop is also an all-in-one device, coming with its own keyboard and monitor (and a trackpad, I suppose, but the best gaming mouse would be better suited). Unlike a gaming desktop, that's less cash to spend on essential peripherals. And with the stunning per-key RGB keyboard (sporting hot-swappable WASD keys) and 18-inch mini-LED display with a mega-fast 205Hz refresh rate, these are premium assets to have. Granted, it takes a lot of money to get high frame rates at equally high settings in a portable machine, even if it doesn't quite match the sheer might of a gaming desktop. But if gaming on the go is more your jam (as is mine), then that's where the perks of a gaming laptop like the Helios 18 AI shine. Back to the crux of the matter, and to put the big question on my mind to rest. Can a gaming laptop like the Acer Predator Helios 18 AI be a true desktop replacement? Well, compared to the power of the similarly priced Predator Orion 7000, not exactly. But that doesn't mean the Helios 18 AI isn't mighty, and it boasts more than enough performance to blaze through the latest, high-demanding PC games (even if the fans can get a tad noisy). You're still getting desktop-level performance — even if it's just over half the power of a gaming desktop. If stationary raw power is what's needed, then the choice is obvious: a gaming desktop will always be the go-to option. But if an all-in-one setup and simple mobility calls, I wouldn't feel like I'm missing out if using a premium gaming laptop. Sure, I'd be missing out on extra performance, but for the most part, I'm still getting pure joy out of playing high-end games at their finest. Follow Tom's Guide on Google News to get our up-to-date news, how-tos, and reviews in your feeds. Make sure to click the Follow button.

Trump's unprecedented, potentially unconstitutional deal with Nvidia and AMD, explained: Alexander Hamilton would approve
Trump's unprecedented, potentially unconstitutional deal with Nvidia and AMD, explained: Alexander Hamilton would approve

Yahoo

timea day ago

  • Yahoo

Trump's unprecedented, potentially unconstitutional deal with Nvidia and AMD, explained: Alexander Hamilton would approve

'We negotiated a little deal,' President Donald Trump told reporters on August 11, about the developing situation with leading chip makers Nvidia and AMD continuing to do business in China. He explained that he originally wanted a 20% cut of Nvidia's sales in exchange for the company obtaining export licenses to sell H20 chip to China, but he was persuaded to settle at 15%. The H20 chip is 'obsolete,' Trump added … 'he's selling a essentially old chip.' The chips do appear to be quite significant to China, considering that the Cyberspace Administration of China held discussions with Nvidia over security concerns that the H20 chips may be tracked and turned off remotely, according to a disclosure on its website. The deal, which lifted an export ban on Nvidia's H20 AI chips and AMD's MI308, and followed heated negotiations, was widely described as unusual and also still theoretical at this point, with the legal details still being ironed out by the Department of Commerce. Legal experts have questioned whether the eventual deal would constitute an unconstitutional export tax, as the U.S. Constitution prohibits duties on exports. This has come to be known as the 'export clause' of the constitution. Indeed, it's hard to find much precedent for it anywhere in the history of the U.S. government's dealings with the corporate sector. Erik Jensen, a law professor at Case Western Reserve University who has studied the history of the export clause, told Fortune he was not aware of anything like this in history. In the 1990s, he added, the Supreme Court struck down two attempted taxes on export clause grounds (cases known as IBM and U.S. Shoe). Jensen said tax practitioners were surprised that the court took up the cases: 'if only because most pay no attention to constitutional limitations, and the Court hadn't heard any export clause cases in about 70 years.' The takeaway was clear, Jensen said: 'The export clause matters.' Columbia University professor Eric Talley agreed with Jensen, telling Fortune that while the federal government has previously applied subsidies to exports, he's not aware of other historical cases imposing taxes on selected exporters. Talley also cited the export clause as the usual grounds for finding such arrangements unconstitutional. Rather than downplaying the uniqueness of the arrangement, Treasury Secretary Scott Bessent has been leaning into it. In a Bloomberg television interview, he said: 'I think you know, right now, this is unique. But now that we have the model and the beta test, why not expand it? I think we could see it in other industries over time.' Bessent and the White House insist there are 'no national security concerns,' since only less-advanced chips are being sold to China. Instead, officials have touted the deal as a creative solution to balance trade, technology, and national policy. How rare is this? The arrangement has drawn sharp reaction from business leaders, legal experts, and trade analysts. Julia Powles, director of UCLA's Institute for Technology, Law & Policy, told the Los Angeles Times: 'It ties the fate of this chip manufacturer in a very particular way to this administration, which is quite rare.' Experts warned that if replicated, this template could pressure other firms—not just tech giants—into similar arrangements with the government. Already, several unprecedented arrangements have been struck between the Trump administration and the corporate sector, ranging from the 'golden share' in U.S. Steel negotiated as part of its takeover by Japan's Nippon Steel to the federal government reportedly discussing buying a stake in chipmaker Intel. Nvidia and AMD have declined to comment on specifics. When contacted by Fortune for comment, Nvidia reiterated its statement that it follows rules the U.S. government sets for its participation in worldwide markets. 'While we haven't shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America's AI tech stack can be the world's standard if we race.' The White House declined to comment about the potential deal. AMD did not respond to a request for comment. While Washington has often intervened in business—especially in times of crisis—the mechanism and magnitude of the Nvidia/AMD deal are virtually unprecedented in recent history. The federal government appears to have never previously claimed a percentage of corporate revenue from export sales as a precondition for market access. Instead, previous actions took the form of temporary nationalization, regulatory control, subsidies, or bailouts—often during war or economic emergency. Examples of this include the seizure of coal mines (1946) and steel mills (1952) during labor strikes, as well as the 2008 financial crisis bailouts, where the government took equity stakes in large corporations including two of Detroit's Big three and most of Wall Street's key banks. During World War I, the War Industries Board regulated prices, production, and business conduct for the war effort. Congress has previously created export incentives and tax-deferral strategies (such as the Domestic International Sales Corporation and Foreign Sales Corporation Acts), but these measures incentivized sales rather than directly diverting a fixed share of export revenue to the government. Legal scholars stress that such arrangements were subjected to global trade rules and later modified after international complaints. Global lack of precedent The U.S. prohibition on export taxes dates back to the birth of the nation. Case Western's Jensen has written that some delegates of the Constitutional Convention of 1787, such as New York's Alexander Hamilton, were in favor of the government being able to tax revenue sources such as imports and exports, but the 'staple states' in the southern U.S. were fiercely opposed, given their agricultural bent, especially the importance of cotton at that point. Still, many other countries currently have export taxes on the books, though they are generally imposed across all exporters, rather than as one-off arrangements that remove barriers to a specific market. And many of the nations with export taxes are developing countries who tax agricultural or resource commodities. In several cases (Uganda, Malaya, Sudan, Nigeria, Haiti, Thailand), export taxes made up 10% to 40% of total government tax revenue in the 1960s and 1970s, according to an IMF staff paper. Globally, most countries tax profits generated within their borders ('source-based corporate taxes'), but rarely as a direct percentage of export sales as a market access precondition. The standard model is taxation of locally earned profits, regardless of export destination; licensing fees and tariffs may be applied, but not usually as a fixed percent of export revenue as a pre-negotiated entry fee. Although the Nvidia/AMD deal doesn't take the usual form of a tax, Case Western's Jensen added. 'I don't see what else it could be characterized as.' It's clearly not a 'user fee,' which he said is the usual triable issue of law in export clause cases. For instance, if goods or services are being provided by the government in exchange for the charge, such as docking fees at a governmentally operated port, then that charge isn't a tax or duty and the Export Clause is irrelevant. 'I just don't see how the charges that will be levied in the chip cases could possibly be characterized in that way.' Players have been known to 'game' the different legal treatments of subsidies and taxes, Columbia's Talley added. He cited the example of a government imposing a uniform, across-the-board tax on all producers, but then providing a subsidy to sellers who sell to domestic markets. 'The net effect would be the same as a tax on exports, but indirectly.' He was unaware of this happening in the U.S. but cited several international examples including Argentina, India, and even the EU. One famous example of a canny international tax strategy was Apple's domicile in Ireland, along with so many other multinationals keeping their international profits offshore in affiliates in order to avoid paying U.S. tax, which at the time applied to all worldwide income upon repatriation. Talley said much of this went away after the 2018 tax reforms, which moved the U.S. away from a worldwide corporate tax, with some exceptions. The protection racket comparison If Trump's chip export tax is an anomaly in the annals of U.S. international trade, the deal structure has some parallels in another corner of the business world: organized crime, where 'protection rackets' have a long history. Businesses bound by such deals must pay a cut of their revenues to a criminal organization (or parallel government), effectively as the cost for being allowed to operate or to avoid harm. The China chip export tax and the protection rackets extract revenue as a condition for market access, use the threat of exclusion or punishment for non-payment, and both may be justified as 'protection' or 'guaranteed access,' but are not freely negotiated by the business. 'It certainly has the smell of a governmental shakedown in certain respects,' Columbia's Talley told Fortune, considering that the 'underlying threat was an outright export ban, which makes a 15% surcharge seem palatable by comparison.' Talley noted some nuances, such as the generally established broad statutory and constitutional support for national-security-based export bans on various goods and services sold to enumerated countries, which have been imposed with legal authority on China, North Korea, Iraq, Russia, Cuba, and others. 'From an economic perspective, a ban on an exported good is tantamount to a tax of 'infinity percent' on the good,' Talley said, meaning it effectively shuts down the export market for that good. 'Viewed in that light, a 15% levy is less (and not more) extreme than a ban.' Still, there's the matter, similar to Trump's tariff regime, of making a legal challenge to an ostensibly blatantly illegal policy actually hold up in court. 'A serious question with the chips tax,' Case Western's Jensen told Fortune, 'is who, if anyone, would have standing to challenge the tax?' In other words, it may be unconstitutional, but who's actually going to compel the federal government to obey the constitution? This story was originally featured on Sign in to access your portfolio

NVIDIA (NVDA) Stock Gets Bullish Call Amid U.S.–China Chip Agreement Reports
NVIDIA (NVDA) Stock Gets Bullish Call Amid U.S.–China Chip Agreement Reports

Yahoo

timea day ago

  • Yahoo

NVIDIA (NVDA) Stock Gets Bullish Call Amid U.S.–China Chip Agreement Reports

NVIDIA Corporation (NASDAQ:NVDA) is one of the . On August 12, Bank of America reiterated the stock as 'Buy.' The firm said that it is sticking with the stock after reports of a favorable deal for Nvidia to receive chip export licenses. 'Busy period of interactions between the US Government (USG)/White House (WH) and major US chipmakers. The critical nature of semis is likely to enhance these interactions that will continue to be both positive and a headwind/source of volatility. Recent news involves: 15% potential tax/levy on sales of specific AI chips in return for China approvals: a net positive and we maintain Buys on NVDA, AMD.' Analysts on Wall Street currently have a consensus 'Buy' rating on the stock. The average price target of $190 implies a 5.10% upside; however, the Street-high target of $250 implies an upside of 38%. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. 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: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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