Nvidia, Broadcom, AMD Gain As Trump Reshapes AI Chip Export Rules To Ease Market Pressure

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.

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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.