TLDR
- The Senate passed bipartisan legislation requiring Nvidia and AMD to prioritize US customers over Chinese companies when selling advanced AI chips
- Nvidia stock closed at a record high of $192.57 on Thursday and rose to $193.47 in premarket trading Friday
- The bill was approved as part of the annual defense policy package but must still be reconciled with the House version
- China has increased customs inspections of US semiconductor shipments at major ports in recent weeks
- Industry groups have criticized the legislation, arguing it would restrict competition and harm innovation
The Senate approved new export control legislation late Thursday that would force Nvidia and AMD to give American customers priority access to advanced AI chips before selling to Chinese companies. The bipartisan bill passed easily as part of the annual defense policy package.
Advanced AI chipmakers Nvidia and AMD would have to ensure US companies get priority access to their products before China under legislation the Senate passed, a setback for the industry’s efforts to block the measure https://t.co/jpijeEU25o
— Bloomberg (@business) October 10, 2025
Senator Jim Banks, the Indiana Republican who co-sponsored the bill, said the measure aims to strengthen US competitiveness in cutting-edge industries. Senator Elizabeth Warren of Massachusetts, the lead Democratic sponsor, said the bill ensures American customers won’t have to wait behind Chinese tech companies for the latest chips.
Nvidia stock closed at an all-time high of $192.57 on Thursday. Shares continued climbing in premarket trading Friday, reaching $193.47.
The legislation comes as China has stepped up efforts to block US semiconductor imports. Customs officers have conducted strict checks on chip shipments at major ports over the past few weeks, according to the Financial Times. Three people familiar with the matter confirmed the increased inspections.
Nvidia declined to comment on the customs checks when contacted by Barron’s. The company previously stated that the US is its largest market and the legislation addresses a problem that doesn’t exist.
The Senate vote follows a summer deal between the Trump administration and both chipmakers to ease export restrictions to China. Industry groups have pushed back against the new controls, saying they would hurt competition and slow innovation.
Path to Final Bill Remains Uncertain
The House passed its version of the defense policy bill in September without the export control language. Lawmakers from both chambers must now negotiate a final package that may or may not include the chip restrictions.
The monthlong stalemate in the Senate ended with Thursday’s vote. Opponents are expected to continue lobbying Congress to remove the provision from the final bill.
AI policy nonprofit Americans for Responsible Innovation called the measure a major win for US economic competitiveness and national security. Tech industry leaders have taken the opposite view, warning the restrictions could backfire.
Stock Gains Continue Despite Monday Dip
Nvidia dropped on Monday after AMD announced a long-term supply deal with OpenAI. The stock recovered quickly and has posted gains for the week overall.
The company received a boost from news that it’s helping fund xAI, the AI startup led by Tesla CEO Elon Musk. Taiwan Semiconductor Manufacturing reported a revenue surge on Thursday, which helped drive Nvidia shares higher.
The stock climbed 0.5% in premarket trading Friday. Futures tracking the S&P 500 were flat for the session.
Nvidia appeared to shrug off both the China customs inspections and the new Senate legislation. The stock has maintained its upward momentum throughout the week despite the regulatory headwinds.
The Senate approved the priority access requirement as part of efforts to limit exports to China and other foreign adversaries. The bill would require chipmakers to ensure US companies get products before Chinese buyers when supplies are limited.
Nvidia and AMD would need to implement new systems to track and prioritize customer orders under the legislation. The companies have not outlined how they would comply if the measure becomes law.
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