This article first appeared on GuruFocus.

The White House is quietly pushing Congress to back off a proposal that would limit Nvidia (NASDAQ:NVDA) from selling its most advanced AI chips to China and other restricted countries, Bloomberg reports. The bill being discussed the bipartisan GAIN AI Act is still in its early stages, but it would require chipmakers to give U.S. companies first access to AI chips before any can be exported abroad.

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Lawmakers are considering whether to attach the measure to the annual defense spending bill, which could turn this into a much bigger political fight. For Nvidia, the White House's early pushback is a welcome sign. The company has been lobbying hard to avoid additional export barriers that could complicate its global sales strategy.

China used to be one of Nvidia's strongest markets, but the chipmaker has already stopped including China in guidance because of rising geopolitical tension. Meanwhile, Beijing is tightening its own scrutiny of U.S. chips as it races to build homegrown AI systems.

The report surfaced right as Nvidia posted strong Q3 results and upbeat guidance, sending the stock up 5% after hours.