Chips stocks received a boost following the Trump administration’s plans to rescind AI chip restrictions set by the Biden administration, according to a new report from Bloomberg.
The export controls, called the AI Diffusion Rule, was set to be enacted on May 15, creating a three-tier system for chip exports.
AI Diffusion Rule Will Not Be Enforced on May 15
While the AI Diffusion Rule will no longer enforced on the 15th, Trump has plans to create a new set of chip restriction rules.
“The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation. We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance,” said a spokesperson from the Commerce Department’s Bureau of Industry and Security.
AI chip leader Nvidia (NVDA) closed higher by 3% on the news.
