NVIDIA Shares Climb as U.S. Moves to Lift AI Chip Restrictions
NVIDIA’s stock (NASDAQ: NVDA) jumped 2.6% at its session peak following news that the Trump administration plans to roll back AI chip export restrictions introduced under the Biden administration. As reported by Bloomberg, the potential policy shift could reshape the global semiconductor trade landscape, easing tensions among top tech companies and governments.
The expected rollback is part of a broader review of chip export policies involving companies like NVIDIA. The “AI diffusion rule,” which was due to take effect May 15, is not expected to be enforced. Initially implemented in the final days of President Biden’s term, the rule aimed to prevent China from indirectly accessing advanced AI chips by adding new U.S. licensing requirements for international chip shipments.
The decision to relax these curbs coincides with President Trump’s upcoming Middle East visit, where nations such as Saudi Arabia and the UAE have raised concerns about restricted access to AI chips. Reports suggest Trump officials are crafting a new framework that would balance tighter export controls with efforts to sustain U.S. leadership in AI innovation.
The Commerce Department’s Bureau of Industry and Security has called the Biden-era rule “overly complex and bureaucratic,” warning that it could hinder American technological progress. While new regulations are being drafted, the department stressed that existing export restrictions remain firmly in place. Additionally, the administration plans to target nations like Malaysia and Thailand, which have been diverting chips to China, with new controls.
This news also lifted other semiconductor stocks, including Intel (NASDAQ: INTC), NXP Semiconductors (NASDAQ: NXPI), KLA, Analog Devices (NASDAQ: ADI), and Broadcom (NASDAQ: AVGO), as the industry keeps a close watch on developments that could reshape semiconductor trade and supply chains worldwide.
