By Adam Clark
Nvidia and other semiconductor stocks were rising on Thursday as the Trump administration said it plans to scrap regulations that would limit exports of artificial-intelligence chips worldwide.
Nvidia shares were up 1.9% at $119.25 in premarket trading. Advanced Micro Devices was gaining 1.3% and Broadcom was rising 1.9% in premarket trading.
Chip makers were rising after the Commerce Department said Wednesday afternoon that it doesn't intend to implement AI processor restrictions drawn up under the Biden administration, The Wall Street Journal reported. The curbs were set to go into effect on May 15 and would have limited sales more widely than existing sanctions on exports to China.
The so-called 'AI diffusion' rules were expected to reduce the long-term market for AI chips by as much as 10%, according to analysts at BofA Securities.
"We welcome the administration's leadership and new direction on AI policy. With the AI Diffusion Rule revoked, America will have a once-in-a-generation opportunity to lead the next industrial revolution and create high-paying U.S. jobs, build new U.S.-supplied infrastructure, and alleviate the trade deficit," an Nvidia spokesperson said in an emailed statement.
Write to Adam Clark at adam.clark@barrons.com
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May 08, 2025 05:19 ET (09:19 GMT)
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