Nvidia Flat Despite Loosening Chip Restrictions

Nvidia (NASDAQ:NVDA) shares were unchanged on Thursday as the Trump administration prepared to rescind what’s known as the “AI diffusion rule,” effectively stopping a set of artificial intelligence chip controls from taking effect later this month. A Department of Commerce spokesperson confirmed the plan after Bloomberg reported on it earlier.“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,” a Department of Commerce spokesperson said. 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 such as those made by Nvidia, Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) can be shipped to the country without a license.The chip restrictions were scheduled to take effect on May 15.“We welcome the Administration’s leadership and new direction on AI policy,” an Nvidia spokesperson said in a statement. “With the AI Diffusion Rule revoked, America will have a once-in-a-generation opportunity to lead the next industrial revolution and create high-paying U.S. jobs, build new U.S.-supplied infrastructure, and alleviate the trade deficit.”NVDA shares inched up nine cents Thursday to $117.14.