Semiconductor Stocks Gain As Trump's AI Action Plan Fuels Hopes of Major Chip Demand Surge

The White House has unveiled “Winning the AI Race: America’s AI Action Plan,” fulfilling President Trump’s January executive order to remove obstacles to U.S. leadership in artificial intelligence.

AI chip stocks Nvidia NVDA, Advanced Micro Devices AMD, Broadcom AVGO, Marvell Technology MRVL, and Taiwan Semiconductor Manufacturing Co TSM gained on Wednesday, giving up Tuesday’s losses.

The stocks had declined amid reports indicating OpenAI and SoftBank SFTBY clashed, stalling the $500 billion Stargate project and delaying major data center deals.

Also Read: Semiconductor Stocks React To Key Policies And Earnings

This comprehensive strategy outlines over 90 federal policy actions that will be implemented in the coming weeks and months. These actions advance a vision of technological supremacy designed to secure America’s economic competitiveness, national security, and global influence.

The plan revolves around three central pillars: Accelerating Innovation, Building American AI Infrastructure, and Leading in International Diplomacy and Security.

It signals an aggressive effort by the Trump administration to ensure the U.S. dominates the AI landscape while supporting American workers and values.

The Departments of Commerce and State will collaborate with industry leaders to deploy secure, end-to-end AI export packages to allied nations, including hardware, software, models, and standards.

The administration will modernize and expedite federal permitting processes for critical infrastructure projects, such as data centers and chip fabrication plants. It also plans to launch national workforce development programs for high-demand roles like electricians and HVAC technicians.

The federal government will streamline AI-related regulations, seeking input from the private sector to remove bureaucratic barriers to innovation and adoption.

Updated procurement standards will require federal contracts with AI developers to ensure large language models remain objective and ideological bias-free.

Price Action: NVDA stock is trading higher by 1.25% to $169.11 at last check Wednesday.

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