Nvidia, AMD And Other Chip Stocks Gain As Trump Plans To Ease AI Chip Export Rules

Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD) stocks gained on Wednesday after reports indicated the Trump Administration plans to repeal the Biden administration’s artificial intelligence diffusion that created three broad tiers of access for countries seeking AI chips and would have taken effect May 15.

President Trump’s administration has warned global companies against using Huawei Technologies Ascend AI chips, threatening them with criminal penalties for violating U.S. semiconductor sanctions, Bloomberg reported on Wednesday, citing unnamed sources familiar with the matter.

Instead, the U.S. government is drafting its approach and could forge individual deals with countries.

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Huawei has begun delivering AI chip “clusters” to clients in China, which it claims to outperform the leading U.S. AI chipmaker, Nvidia, on key metrics such as total computing and memory.

Huawei is boosting production capacity by building its advanced semiconductor production lines, as Chinese companies cut off from Nvidia’s products are increasing orders.

Reportedly, Trump’s government is still working on replacement regulations. Trump officials intend to impose curbs on countries that have diverted chips to China, including Malaysia and Thailand.

At the same time, the Commerce Department will continue to enforce existing chip export rules strictly.

The U.S. officially blacklisted Huawei in May 2019 (during President Trump’s first term), citing national security threats. The Biden administration launched multiple semiconductor sanctions on China, restricting its access to Nvidia and rival semiconductor technologies.

Meanwhile, President Trump showcased Saudi Arabia’s $600 billion investment commitment in the U.S. on Tuesday, listing a series of multibillion-dollar deals with leading American corporations in tech, defense, and infrastructure.

The company announced multi-billion dollar commercial deals with companies including Amazon.com Inc (NASDAQ:AMZN), Oracle Corp (NYSE:ORCL), and AMD.

Price Actions: NVDA stock is up 3.81% at $134.86 at last check on Wednesday. AMD is up 4.06%.

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