This article first appeared on GuruFocus.

Nvidia (NASDAQ:NVDA) may avoid limits on selling advanced AI chips to China and other nations under arms embargo, following a decision by U.S. lawmakers to leave the measure out of the must-pass defense bill.

The proposed GAIN AI Act would have required chipmakers, including Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), to prioritize U.S. customers before exporting high-performance AI processors abroad. Lawmakers debated including it in the annual defense policy legislation, expected Friday, but sources indicate it is not part of the current draft.

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Nvidia CEO Jensen Huang met with President Donald Trump and congressional leaders on Wednesday to discuss AI policy.

He described the exclusion of GAIN AI from the bill as wise and cautioned against creating a patchwork of state-level AI regulations.

Analysts note the outcome may strengthen Nvidia's position in international AI markets while regulatory uncertainty persists.

Shares of Nvidia edged slightly higher in early Thursday trading, as investors monitor how the stock performs during regular session hours.