Nvidia pushes back on AI bubble narrative as Blackwell drives Q3 beat, shares jump
Investing.com-- The Donald Trump administration is asking Congress to reject a proposed measure that seeks to limit NVIDIA Corp’s (NASDAQ:NVDA) ability to sell artificial intelligence chips to China and embargoed countries, Bloomberg reported on Thursday, citing people familiar with the matter.
The measure in question is the bipartisan GAIN AI Act, which aims to create a system requiring chipmakers to give U.S. companies first rights to AI chips, before any sales to China and other embargoed countries are made.
The GAIN Act is still in its early stages, with lawmakers also discussing whether to include the act in an annual defense bill.
The White House’s stance is a victory for Nvidia, which has been consistently lobbying to be allowed to sell more chips overseas. China until recently still represented a major market for Nvidia, although the firm signaled earlier this year that it would stop including the country in its sales forecasts.
This also came amid increased Chinese scrutiny towards American-made chips, as Beijing pushed for full self-reliance in AI technology.
The Bloomberg report comes just hours after Nvidia clocked stronger-than-expected third-quarter earnings and presented an upbeat outlook for the current quarter. CEO Jensen Huang also pushed back against fears of an AI-fueled bubble in tech valuations.