Donald Trump just sent the tech industry into a tizzy after announcing his plan to reverse yet another Biden rule.
Trump announced that he will be canceling Biden’s AI chip rules, which immediately impacted NVIDIA stock.
Just prior to taking office, Biden decided to put the clamps down on AI chips, introducing a new framework in the name of national security.
Commerce Secretary Gina Raimondo explained, “As AI becomes more powerful, the risks to our national security become even more intense.
“[The framework] is designed to safeguard the most advanced AI technology and ensure that it stays out of the hands of our foreign adversaries but also enabling the broad diffusion and sharing of the benefits with partner countries.”
Semiconductor Industry Association (SIA) President and CEO John Neuffer claimed the policy was rushed, adding, “The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors.”
As Donald Trump has done with many things implemented by Joe Biden, he rescinded the new rules this week.
A Commerce spokesperson explained, “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.”
The announcement had an immediate impact on the stock market, which has been clawing its way back to level after the Trump tariff announcement sent it reeling by several thousand points.
It did not take long for the announcement to have a major impact on the market, more specifically, on NVIDIA (NVDA) stock.
The stock was up 3% at the end of trading on Wednesday, and it held its own on Thursday, closing up 0.26%. This is good news for investors, as NVIDIA was hit hard by Trump’s tariffs, but like the rest of the market, it is clawing its way back.
After Trump’s initial tariff announcements, the Dow Jones dropped by about 6,000 points overall, dropping to 37,645.59 on April 8, down from a high of 45,073.63
The market is currently sitting at 41,368.45, so it still has some room to make up, but it has been headed in the right direction for most of the last two weeks, having already made up about half of the losses suffered from the tariff announcements. This news as well as Trump announcing a new trade deal with the UK should help it continue to recover.
