Nvidia Stock Rises Pre-Market As Trump Rolls Back AI Regulation: Retail Awaits Impact

Nvidia Corp. (NVDA) rose nearly 1% in pre-market trading Tuesday, along with other major chip stocks, as President Donald Trump began his second term by revoking a key AI-focused executive order signed by his predecessor, Joe Biden.

Shares of Broadcom Inc. (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSM) ADRs also climbed more than 1%, while large-cap peers ASML Holding N.V. (ASML), Qualcomm Inc. (QCOM), and Arm Holdings Plc. (ARM) saw similar gains in early trade.

Within hours of returning to office for his second term, Trump rescinded nearly 80 executive orders signed under Biden, including an October 2023 AI order that mandated developers of AI systems posing national security risks to share safety test results with the government before public disclosure.

The move signals the new administration’s intent to loosen AI regulations that industry leaders, including Nvidia, have criticized for stifling innovation. 

While the immediate impact on chipmakers is unclear, the rollback aligns with Trump’s historically pro-industry stance on advanced technologies.

Nvidia Corp. Sentiment and Message Volume on Jan.21 as of 7:55 a.m. ET | Source: Stocktwits

Despite the positive signal, retail sentiment on Stocktwits around Nvidia was in the 'neutral' territory with ‘low’ chatter levels as message volumes remained muted over the long weekend.

Some users viewed the rollback as a long-term positive for Nvidia, with one noting that “it may be a bumpy road ahead, but it should be profitable.” 

Others expressed disappointment at the stock’s lackluster pre-market performance, given the broader shift in regulatory tone.

The divergence comes as investors continue to weigh the Biden administration’s recently announced framework to curb AI chip exports to nations deemed “countries of concern,” including China. The restrictions, targeting Nvidia’s high-end AI chips, remain a source of concern for long-term revenue growth.

Nvidia’s stock has more than doubled in value over the past year, but so far this year it’s down by around 0.4%. 

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Read also: Nvidia Retail Investors Don’t See Biden's AI Chip Regulations As A Long-Term Threat