Trump to Withdraw Biden's Chip Export Restrictions, Create New Rules

Tip Ranks
2025.05.07 20:03
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Chips stocks surged after the Trump administration announced plans to withdraw the Biden administration's AI chip export restrictions, known as the AI Diffusion Rule, which was set to take effect on May 15. A spokesperson from the Commerce Department criticized the Biden rule as overly complex and stated that a simpler replacement will be introduced to foster American innovation. Nvidia (NVDA) shares rose by 3% following the news.

Chips stocks received a boost following the Trump administration’s plans to rescind AI chip restrictions set by the Biden administration, according to a new report from Bloomberg.

The export controls, called the AI Diffusion Rule, was set to be enacted on May 15, creating a three-tier system for chip exports.

AI Diffusion Rule Will Not Be Enforced on May 15

While the AI Diffusion Rule will no longer enforced on the 15th, Trump has plans to create a new set of chip restriction rules.

“The Biden AI rule is overly complex, overly bureaucratic, and would stymie American innovation. We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance," said a spokesperson from the Commerce Department's Bureau of Industry and Security.

AI chip leader Nvidia (NVDA) closed higher by 3% on the news.

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