As of May 8, 2025, Nvidia Corporation (NASDAQ: NVDA) is up sharply, with shares trading at $117.94, a 3.65% intraday gain, as the Trump administration signals a major policy reversal on artificial intelligence (AI) chip exports.
Trump Administration Eyes Reversal of Biden-Era Chip Curbs
Nvidia’s stock popped following a report that President Donald Trump’s administration intends to roll back the AI chip export restrictions enacted under President Biden. The curbs were set to take effect May 15, aimed at blocking high-end chip sales—particularly to China.
The repeal, still under review, is expected to benefit major U.S. semiconductor manufacturers that have warned of the long-term consequences of cutting off trade to one of the world’s largest markets for AI hardware.
Why the Policy Reversal Matters
- The Biden administration’s rule limited exports of Nvidia’s advanced AI chips like the A100 and H100.
- China is a key consumer market for Nvidia, accounting for billions in annual revenue.
- Industry leaders have expressed concern that restrictions could encourage China to accelerate development of its own domestic chips.
Nvidia CEO: Chinese Market Still Critical
Nvidia CEO Jensen Huang has repeatedly emphasized that restricting chip sales won’t stop China from developing its own solutions. In recent public remarks, Huang estimated the AI chip market in China could be worth up to $50 billion over the next few years.
“If they can’t buy from us, they’ll build it themselves,” Huang warned, noting that shutting off access could have lasting strategic consequences for the U.S. semiconductor lead.
Stock Market Reaction and Sector Impact
The announcement sent semiconductor stocks broadly higher, with Nvidia leading the way. The Nasdaq 100 index rose 1.2%, fueled by bullish sentiment across the AI and tech sectors.
Key NVDA Trading Stats (May 8, 2025 @ 10:11 AM ET)
- Current price: $117.94 USD
- Daily high: $119.44
- Daily low: $117.94
- Opening price: $118.48
- Trading volume: 14,418,751 shares
Why Investors Are Bullish
- Renewed access to global AI markets, especially China.
- Eased geopolitical risk for U.S. chipmakers.
- Potential for higher sales and earnings in the next few quarters.
- Strong positioning as a leader in AI hardware and GPUs.
What Comes Next for Nvidia
While the policy shift isn’t finalized, markets are pricing in the likelihood of the rollback. If confirmed, it would represent a sharp pivot in U.S. tech trade policy and could unleash a new wave of AI chip demand.
Investors and analysts will also be watching:
- Upcoming earnings reports from major chipmakers.
- Formal announcements from the White House or Department of Commerce.
- China’s reaction and potential countermeasures.