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Trump’s criticism has sparked concerns among executives of chipmakers, who are reportedly looking into the legalese to understand if the Trump administration can claw back grants awarded under the CHIPS Act.
Shares of some of the biggest semiconductor players, including Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD), and Broadcom Inc. (AVGO), among others, surged by as much as 6% on Wednesday even as U.S. President Donald Trump reportedly called the CHIPS Act “horrible.”
“You should get rid of the CHIP Act,” Trump told Speaker Mike Johnson, according to a New York Times report, and then called it a “horrible, horrible thing.”
Trump’s criticism has sparked concerns among executives of chipmakers, who are reportedly looking into the legalese to understand if the Trump administration can claw back grants awarded under the CHIPS Act.
The report adds that on a call with the Semiconductor Industry Association, executives explained away Trump’s criticism of the CHIPS Act to personal animosity with former President Joe Biden.
The CHIPS Act, announced in 2022, allocated nearly $70 billion to semiconductor research and manufacturing as the U.S. geared up to diversify its supply chains following tensions with China.
It also aims to fortify domestic manufacturing capabilities, with Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and Intel Corp. (INTC) being some of the key players involved.
While retail sentiment on Stocktwits around Nvidia was ‘neutral,’ investors were bullish about Broadcom and AMD.
One user said Broadcom is their top pick for them when it comes to the semiconductor industry.
Another user said that it is “time to get the deals done” with respect to the rumored Intel foundry joint venture between TSMC, Broadcom, Nvidia, and AMD.
Despite the Wednesday surge, Nvidia’s stock is down nearly 14% year-to-date. AMD’s shares are down nearly 17%, while Broadcom’s stock has declined over 16% in this period.
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