Nvidia Stock Surges as Washington Removes Key Export Barrier

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Nvidia shares advanced more than two percent on Thursday following a significant regulatory development in the U.S. capital. A contentious legislative proposal that would have severely restricted the company's ability to sell advanced AI chips to China has been omitted from the final draft of the annual defense authorization bill.

The removal of the so-called "GAIN AI Act" from the must-pass defense package represents a major strategic win for the semiconductor giant. The proposed legislation would have mandated that chipmakers prioritize U.S. customer orders for cutting-edge hardware—specifically the H200 and Blackwell series—over requests from China or other nations subject to arms embargoes. This would have effectively closed a loophole Nvidia has utilized to maintain its commercial presence in the Chinese market.

The timing of this legislative shift appears closely linked to Nvidia's political engagement. CEO Jensen Huang met with former President Donald Trump and congressional members on Wednesday. Shortly after, Huang praised the decision to scrap the restrictions as "wise," arguing that such limits would undermine American technological leadership. The sequence of events highlights Nvidia's considerable political influence, an advantage over competitors with less lobbying power.

Financial Performance and Insider Activity

This favorable political development arrives at a pivotal moment for the company's financial trajectory. For the third quarter of fiscal 2026, Nvidia reported record revenue of $57.0 billion, a 62 percent year-over-year increase. Its data center segment alone contributed $51.2 billion to this total. Despite these robust figures, investor sentiment had recently been weighed down by concerns that a potential Trump administration could enact stricter export controls.

Meanwhile, a recent insider transaction has captured market attention. Director Seawell A. Brooke sold shares worth approximately $2.3 million in early December at an average price of around $183.93. While such sales are routine, the timing amidst the high-stakes regulatory debate has prompted scrutiny from some investors.

Market Outlook and Technical Levels

The final passage of the defense bill is anticipated in the coming days, which will provide complete regulatory clarity. Market analysts maintain an optimistic stance, with price targets for 2026 ranging between $235 and $250. From a technical perspective, the equity must defend the $180 level to preserve its bullish chart structure. A sustained breakout above $185 could potentially pave the way for a move toward the $200 mark.