By Nauman khan
Publication Date: 2025-11-14 15:57:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) faced pressure on Friday after two of its largest customers, Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), said they were backing legislation that would limit the chipmaker’s ability to ship advanced AI processors to China, according to a Friday report by The Wall Street Journal.
The proposal, widely described as the GAIN AI Act, would ask U.S. AI-chip makers to satisfy domestic orders before exporting to countries such as China, a policy backers frame as a national-security safeguard while critics warn it may tighten global access to top-tier compute.
The move by major cloud providers marks a rare split with Nvidia, which has warned that tighter export controls could dent competition and limit service to overseas customers.
Nvidia shares fell about 1.3% in premarket trade after the report, reflecting concern about possible curbs on sales to the world’s second-largest market.
The episode adds to Washington’s debate over how to balance keeping AI leadership while managing security risks, and could affect which firms get priority access to scarce, high-end chips.
