Nvidia (NVDA) stock rose 3.1%, while AMD (AMD) edged up about 2% following reports that President Donald Trump’s team plans to roll back the Biden-era export restrictions on AI chips. The move was seen as a potential catalyst for U.S. chipmakers looking to expand in key overseas markets. Bloomberg was the first to report the news, citing sources familiar with the matter.
A spokesperson from the Commerce Department’s Bureau of Industry and Security called the Biden-era AI rule “overly complex” and “bureaucratic,” adding that the new plan would focus on boosting “American innovation” and maintaining the country’s leadership in AI.
The announcement sparked gains across semiconductor stocks, as investors welcomed the prospect of relaxed trade limits and stronger international demand. As a result, the Philadelphia Semiconductor Index (SOX), a key benchmark for the sector, climbed 1.7%.
Trump Pushes for Simpler AI Export Rules
The Trump administration plans to repeal the Biden-era AI diffusion rule, which was set to take effect on May 15, 2025. This rule classified countries into three tiers and aimed to block the export of U.S. AI chips to China through third-party nations. However, critics said the system was overly complex, caused delays, and made it harder for companies like Nvidia and AMD to operate globally.
Trump’s team has confirmed that it will not enforce the rule when it takes effect on May 15. Instead, officials are working on a “simpler” framework that still prioritizes national security. The goal, they say, is to replace the current system with one that supports innovation while guarding U.S. tech interests.
The announcement also comes just ahead of Trump’s upcoming trip to the Middle East, scheduled for May 13–16, where he is expected to meet with leaders seeking better access to U.S. AI chips. The visit could lead to new chip deals with countries such as Saudi Arabia and the UAE. The UAE, in particular, has been proactive, pledging to invest $1.4 trillion in U.S. tech and infrastructure over the next decade, an initiative that has “bent the conversation in the country’s favor,” one source said.
Big Win for Nvidia, AMD, and Other Tech Giants
Nvidia, the top name in AI chips, has long opposed broad export bans. Just yesterday, CEO Jensen Huang warned that excessive restrictions could push neutral countries closer to China. He also described China as a “key market,” predicting that AI chip demand there could reach $50 billion in the next few years. Still, the Trump administration has maintained a firm stance on limiting China’s tech growth. For instance, it has already barred Nvidia from selling its H20 chip in China—a move that resulted in $5.5 billion in write-downs for the company.
AMD, a major rival to Nvidia, also stands to benefit. The company has been expanding its presence in AI data centers with new chips for training and smart computing. Easing the export curbs could unlock more international sales and partnerships, especially in regions like India, Malaysia, and the Gulf states.
The AI diffusion rule had also affected U.S. data center expansion. Oracle (ORCL), for example, faced delays in its AI data center project in Malaysia due to the export policy. With the rule now expected to be paused, those plans are likely to move forward.
Which AI Chip Stock Is Better, NVDA or AMD?
We used TipRanks’ Stock Comparison Tool to evaluate key metrics for Nvidia and AMD. Currently, NVDA stock holds a “Strong Buy” consensus rating from Wall Street, with analysts projecting a 40.3% upside from current levels.
In comparison, AMD stock carries a “Moderate Buy” consensus rating, along with a “Perfect 10” Smart Score on TipRanks. It also offers a 24.16% upside potential, but is lower than Nvidia’s.
