Shares of Nvidia (NVDA, Financial) rose 3% and AMD (AMD, Financial) edged up about 2% on Wednesday after reports emerged that former U.S. President Donald Trump's team plans to repeal Biden-era restrictions on AI chip exports. The move, aimed at reducing regulatory complexity, could pave the way for U.S. chipmakers to expand in critical overseas markets, according to sources cited by Bloomberg.
The Biden-era rule, set to take effect on May 15, 2025, was designed to limit AI chip sales to China and other strategic rivals by classifying nations into three tiers. However, critics have argued that the rule is overly bureaucratic, causing delays and complicating global operations for companies like Nvidia and AMD.
Trump's team has indicated it will not enforce the rule upon its effective date, instead focusing on a more flexible framework that still safeguards national security while promoting American innovation.
The Philadelphia Semiconductor Index, a key sector benchmark, climbed nearly 2% following the news, reflecting investor optimism about potential boosts to international demand.
