Trump Administration Plans to Overhaul Biden-Era AI Chip Export Restrictions, Boosting Semiconductor Stocks

Chip Stocks Rise As Trump Reportedly Plans To Roll Back Biden-Era AI Export Curbs - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Taiwan Semiconductor (NYSE:TSM)

Chip stocks climbed late Wednesday after Bloomberg reported the Trump administration plans to rescind a key Biden-era export restriction on AI chips. The rollback targets the "AI diffusion rule," which imposed complex licensing rules on sales to dozens of countries. At market close on Wednesday, NVIDIA Corp NVDA shares were up 3.10% to $117.06, Advanced Micro Devices Inc AMD gained 1.76% to $100.36 and Taiwan Semiconductor Manufacturing Co TSM were higher by 1.31% to $174.54. What To Know: The diffusion rule, introduced in January, grouped countries into three tiers with varying levels of export restrictions. Nvidia has been a vocal critic, warning the rules would harm U.S. competitiveness and push allies toward China. Read Also: Apple, Alphabet Shares Tumble Amid Potential AI Search Shift According to Bloomberg, Trump officials aim to replace the rule with a simpler framework that still targets countries accused of diverting chips to China, including Malaysia and Thailand. The move comes ahead of Trump's planned Middle East trip, where countries like the UAE and Saudi Arabia -- previously hit by chip curbs -- hope to negotiate better terms. While the rollback isn't final, the Commerce Department is expected to continue enforcing current restrictions until a new policy is adopted, Bloomberg noted. Read Also: AMD Market Position Is 'The Best In The Company's History,' Says Analyst How To Buy AMD Stock Besides going to a brokerage platform to purchase a share -- or fractional share -- of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, Advanced Micro Devices is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Read Also: Fed Keeps Rates Steady, Warns Of Rising 'Uncertainty About The Economic Outlook' Photo: Shutterstock AMDAdvanced Micro Devices Inc$99.751.15%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum17.10Growth66.98Quality86.00Value14.91Price TrendShortMediumLongOverviewNVDANVIDIA Corp$116.402.52%TSMTaiwan Semiconductor Manufacturing Co Ltd$174.181.10%Got Questions? AskWhich chip manufacturers will benefit most?How will NVIDIA leverage new export rules?What impact will this have on semiconductor ETFs?Could AMD's stock surge with AI chip exports?How might Taiwan Semiconductor expand markets?Which countries are poised for chip supply deals?How will U.S. competitiveness change in AI tech?What risks does China's market pose for U.S. firms?Could Middle Eastern nations become major chip hubs?Which tech sectors might see growth from this change?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia, Broadcom, AMD Gain As Trump Reshapes AI Chip Export Rules To Ease Market Pressure - Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD)

Artificial intelligence chip stocks, including Nvidia Corp NVDA, Broadcom Inc AVGO, Taiwan Semiconductor Manufacturing Co TSM, and Advanced Micro Devices, Inc AMD continued to trade upwards on Thursday, coinciding with reports indicating the Trump administration's plans to revoke a key Biden-era export restriction on AI chips. The rollback targets the "AI diffusion rule," which grouped countries into three tiers with varying levels of export restrictions. Nvidia has been a vocal critic, citing the loss of U.S. competitiveness and allies toward China. Also Read: Taiwan Semiconductor 'At The Heart of New US-Japan-Taiwan' Chip Alliance, Former Japanese Minister Says Washington plans to replace the rule with a simpler framework that targets countries, including Malaysia and Thailand, diverting chips to China. The Trump administration's recent crackdown on Nvidia selling a specialized AI chip to China prompted the company to book a $5.5 billion charge. Trump officials propose restructuring the AI diffusion, which was set to go into effect May 15, the Wall Street Journal reported on Wednesday, citing unnamed sources familiar with the matter. They are exploring blocking China from accessing advanced chips without hurting American technology companies. The move comes ahead of Trump's planned Middle East trip, where countries like the UAE and Saudi Arabia hope to negotiate better terms. The UAE announced a $1.4 trillion commitment to invest in the U.S. in March. Reportedly, Trump officials weighed dumping the tiered system for bilateral agreements with individual countries. It also pressured allies to commit to helping the U.S. keep chips out of the hands of the likes of China in exchange for more favorable tariffs. Big Tech giants, including Microsoft Corp MSFT and Oracle Corp ORCL, had criticized the diffusion rule, citing business opportunity loss for American companies. Read Next: Advanced Micro Devices Drops Samsung, Shifts Chip Orders To Taiwan Semiconductor Image Via Shutterstock AMDAdvanced Micro Devices Inc$102.502.13%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum17.10Growth66.98Quality86.00Value14.91Price TrendShortMediumLongOverviewAVGOBroadcom Inc$204.940.06%MSFTMicrosoft Corp$437.420.94%NVDANVIDIA Corp$116.69-0.31%ORCLOracle Corp$149.990.42%TSMTaiwan Semiconductor Manufacturing Co Ltd$174.600.03%Got Questions? AskWhich AI chip manufacturers will thrive post-rule change?How will Nvidia adjust its strategy now?What impact will this have on Taiwan Semiconductor?Could Broadcom see a surge in orders?Which tech stocks are most vulnerable to policy changes?How might export changes affect global chip supply?Are U.S. allies likely to benefit from new deals?Will Microsoft increase its chip investments?How could this reshape AI technology partnerships?What new opportunities exist for American chipmakers in Asia?Powered ByMarket News and Data brought to you by Benzinga APIs

NVIDIA stock rises following plans to lift chip restrictions By Investing.com

Investing.com -- NVIDIA (NASDAQ: NASDAQ:NVDA) shares climbed to a session high of 2.6% amid reports that the Trump administration intends to rescind Biden-era AI chip curbs, which could reshape semiconductor trade restrictions. The news, as reported by Bloomberg, indicates a potential easing of regulations that have been a point of contention among major tech firms and governments worldwide. The anticipated policy change is part of a larger effort to reevaluate the export of chips from companies like NVIDIA. The so-called AI diffusion rule, set to take effect on May 15, will reportedly not be enforced under the current administration. The rule, introduced in the final week of President Biden's tenure, aimed to prevent China from acquiring AI chip technology through intermediaries by creating new U.S. licensing obligations for AI chip shipments globally. The move to lift these restrictions comes as President Trump prepares for a Middle East trip, where countries such as Saudi Arabia and the United Arab Emirates have expressed dissatisfaction with their limited ability to obtain AI chips. Trump officials are said to be formulating a new rule that would tighten control over chip exports while still promoting American innovation and dominance in AI technology. According to a statement from the Commerce Department's Bureau of Industry and Security, the Biden AI rule was criticized as "overly complex, overly bureaucratic, and would stymie American innovation." The department assures that while it works on a new rule, existing chip export curbs will continue to be strictly enforced. Part of the repeal strategy involves imposing chip controls on countries that have redirected chips to China, such as Malaysia and Thailand. This development has also influenced other semiconductor stocks, with Intel (NASDAQ:INTC), NXP (NASDAQ:NXPI) Semi, KLA, Analog Devices (NASDAQ:ADI), and Broadcom (NASDAQ:AVGO) experiencing gains alongside NVIDIA. The industry is closely monitoring the situation, as the proposed changes could have significant implications for semiconductor trade and the global supply chain.

Chips Stocks Rise as U.S. Plans to Overhaul Curbs on AI Chip Exports

Chip stocks rose across the board as the Trump administration plans to overhaul export regulations on U.S. chip companies. Shares of Advanced Micro Devices climbed 3.8% to $104.20 on Thursday. Intel rose 2.3%, while Qualcomm and Broadcom both ticked up around 1%. Nvidia shares remained flat. The Commerce Department plans to replace a rule proposed by the Biden administration that would limit how many artificial-intelligence chips countries like India, Switzerland, Mexico and Israel can buy, a spokeswoman said. The rule, commonly known as AI diffusion, had been set to go into effect May 15. It aimed to prevent other countries from routing U.S. chips to adversaries like China, but was seen as controversial across the tech industry. Companies like Microsoft and Oracle argued it would harm American companies' business prospects abroad without doing much to hinder China. Other regulations appear to remain for now, though. The Trump administration recently issued new export-licensing requirements covering Nvidia's H20 chips, which the company said would result in a $5.5 billion charge on its quarterly earnings. AMD's MI308 processors also are affected, with the company expecting charges of $800 million.