Trump Administration’s Chip Policy Shift Boosts AI Stocks Like Nvidia

Nvidia (NVDA) and AMD led a rally in AI-related stocks this week following reports that the TRUMP administration plans to rescind Biden-era restrictions on AI chip exports. The proposed policy reversal comes after months of geopolitical tensions that pressured Nvidia’s position in both US and Chinese markets.

The Commerce Department’s Bureau of Industry and Security criticized the existing regulations as ’overly complex’ and ’bureaucratic,’ claiming they hinder American innovation. Officials indicated replacement rules WOULD focus on strengthening overseas chip controls while removing current trade barriers.

Market response was immediate, with semiconductor stocks rebounding from their early-year slump. The policy shift signals potential relief for chipmakers caught in cross-border trade disputes, though new export control mechanisms remain undefined.