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This article first appeared on GuruFocus.

Oct 10 – Shares of two Semiconductor giants, Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), fell sharply on Friday after the U.S. Senate advanced a bill that could restrict exports of artificial intelligence chips to China, reigniting trade tension fears.

The proposed legislation would curb how many advanced AI processors American companies can ship overseas. The bill’s future remains uncertain, as President Donald Trump, who earlier eased chip export rules, could veto it. The House of Representatives is drafting a separate version that currently lacks export limits.

Investors reacted swiftly. AMD dropped about 5%, while Nvidia slipped roughly 2% in afternoon trading. The pullback reflected renewed concerns over Washington’s tightening stance on technology trade with Beijing.

Despite Friday’s fall, AMD has had an 83% year to date, with Nvidia increasing by about 41%. The two stocks have been major winners in the worldwide AI phenomenon, though the Senate’s action indicates that U.S. chipmakers face increasing threats in a climate of trade policy uncertainty.