Tech Giants Amazon & Microsoft Throw Weight Behind Bill to Block Nvidia’s China Chip Exports

Silicon Valley's heavyweights just picked a side in the semiconductor cold war.

Amazon and Microsoft—two of Nvidia's biggest cloud customers—are now openly backing legislation to curb the chipmaker's exports to China. The move signals a tectonic shift in how Big Tech navigates U.S.-China tech tensions.

Why now? Because even trillion-dollar companies get nervous when their AI roadmap depends on a single supplier playing geopolitical chess. Nvidia’s workaround chips for the Chinese market suddenly look less like clever engineering and more like regulatory roulette.

The irony? These same tech giants once lobbied against export controls—back when they thought they could have both the Chinese market and American innovation. Now they’re hedging bets like a crypto trader locking in ETH profits after a 20% pump.

One thing’s clear: When elephants like Amazon and Microsoft start moving, the entire supply chain trembles. Nvidia’s 60% gross margins might be next.

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AMZN, MSFT Back Bill to Limit Nvidia’s China Chip Exports

The GAIN AI legislation would require U.S. chip companies to satisfy domestic demand before exporting to China and other countries, subject to arms embargoes. The support from Microsoft and Amazon is expected to boost the act, even as White House officials, Nvidia, and other chip companies reportedly oppose it. Meanwhile, sources said that President Donald Trump and tech majors Meta Platforms (META) and Alphabet’s Google (GOOGL) haven’t taken a stance on the GAIN AI Act yet.

The legislation reflects the TRUMP administration’s efforts to place greater emphasis on domestic demand. Also, there are growing concerns that China would leverage access to high-end AI infrastructure to bolster its military. Congress is mulling whether to include the act as an amendment to the National Defense Authorization Act, which is generally up for consideration by the president at the end of the year.

Meanwhile, Nvidia, which dominates the AI GPU (graphics processing unit) market, has argued that the GAIN AI Act WOULD restrict global competition for advanced chips, limiting the computing power available to other countries.

Wall Street’s Ratings on the Tech Giants

Despite the ongoing concerns about the valuation of AI stocks, Wall Street has a Strong Buy consensus rating on Nvidia, Amazon, and Microsoft stocks. All three tech giants are seen as key beneficiaries of the ongoing AI boom. Nvidia stock has risen 39% year-to-date, while shares of Amazon and Microsoft are up 8.3% and 19.4%, respectively.