8 May 2025
▶️ Nvidia shares rose on Wednesday on a report that the Trump administration plans to revise a set of chip trade restrictions called the “AI diffusion” rule.
▶️ The rule, which was proposed in the last days of the Biden administration, organizes countries into three different tiers, all of which have different restrictions on whether advanced AI chips like those made by Nvidia, AMD, and Intel can be shipped to the country without a license.
▶️ The Trump administration plans to rescind the rule, Bloomberg reported on Wednesday. The chip restrictions were scheduled to take effect on May 15.
▶️ Nvidia had no comment on the reported move by the Trump administration.
▶️ Chipmakers including Nvidia and AMD have been against the rule.
AMD CEO Lisa Su told CNBC on Wednesday that the U.S. should strike a balance between restricting access to chips for national security and providing access, which will boost the American chip industry.
Nvidia CEO Jensen Huang said earlier this week that being locked out of the Chinese AI market would be a “tremendous loss.”
🔴 However, this is more about Middle East than China. Indeed, the changes are taking shape as Trump readies for a trip to the Middle East, where a number of nations including Saudi Arabia and the UAE have bristled at restrictions on their ability to acquire AI chips.
Source: Shay Boloor, CNBC
