Nvidia stock climbed following President Trump’s decision to revoke a key AI regulation from Biden’s administration.
Nvidia Shares Gain Amid AI Policy Shift
Nvidia shares rose 0.4% to $138.32 in premarket trading. S&P 500 futures also saw a 0.3% increase.
Trump Revokes Biden’s AI Order
President Trump rescinded 80 executive orders, including Biden’s October 2023 AI regulation focused on national security risks.
AI Regulation Relaxation Could Benefit Chip Makers
Biden’s AI order required developers to disclose safety test results. Trump’s move signals plans to loosen AI regulations.
Chip Industry Seeks Innovation-Friendly Policies
Chip makers, including Nvidia, criticized stricter rules on AI and chip exports under Biden for stifling innovation.
Rival Chip Maker Stocks Also Rise
Advanced Micro Devices gained 0.6%, Broadcom increased 1.4%, and Marvell Technology rose 1.4% in premarket trading.
AI Spending to Drive Chip Industry Growth
Citi analysts predict 2025 chip growth driven by a 40% increase in data center spending by cloud service providers.
ASIC Makers Expected to Outpace GPU Producers
Citi forecasts stronger growth for ASIC suppliers like Broadcom and Marvell over GPU makers like Nvidia and AMD.
What It Means for Chip Makers
The policy change could spark innovation and growth, particularly for companies focused on AI technology development.
Conclusion
Nvidia and other chip makers could benefit as Trump’s administration relaxes AI regulations. The industry looks optimistic for 2025.
SOURCE: BARRON’S
