The House Foreign Affairs Committee moved forward with the Multilateral Alignment of Technology Controls on Hardware Act, which seeks to impose stricter export controls on high-end chip-manufacturing equipment and AI hardware. This bill targets tools essential for producing advanced GPUs and other accelerators critical to Nvidia’s product pipeline.

If enacted, the new restrictions could limit shipments of Nvidia’s most advanced GPUs to China, its second-largest market, potentially reducing overseas revenue and slowing deployment of AI data centers. Companies reliant on Nvidia hardware may face procurement delays or need to source alternate suppliers.

China’s Commerce Ministry has signaled it will assess and potentially retaliate, with options including curbing rare-earth exports or implementing regulatory hurdles for U.S. firms. Such measures could further complicate Nvidia’s supply chain and increase costs for global chip production.

Investors are now pricing in the prospect of a sustained tech decoupling that could fragment manufacturing ecosystems and force regional supply networks. The semiconductor industry may see longer lead times, rising component costs and restructured partnerships to navigate geopolitical tensions.