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Washington, D.C. January 21, 2025 President Donald Trump canceled almost 80 executive orders from prior administration including one that limits artificial-intelligence for safety risks and transparency on AI developers and semiconductor companies.
By revoking the order, the compliance that burdens these companies could be eased and investors can expect a more favorable business environment for AI companies and semiconductor manufacturing. The market reacted positively and stocks of major chipmakers such as Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) gains in premarket trading.
Trump's administration reduces government intervention to support private-sector innovation in AI technologies that rely heavily on advanced semiconductor hardware. By having requirements removed for detailed reporting and meticulous safety standard, companies can have reduced compliance costs and deliverfaster innovation in AI, machine learning and advanced quantum computing by spending more in their research and development.
Physicians in KevinMD discusses that reducing hurdles in AI technologies could unlock significant potential in AI-driven industries especially in healthcare industry. Companies will get benefits as AI adoption accelerates across sectors, increasing demand for cutting-edge chips.
Mixed Responses from Analysts and Activists
The immediate market reaction has been positive, but some analysts concerns that the removal of safety and transparency requirements could risk data abuse, algorithmic bias and cybersecurity vulnerabilities whicheventually could impact the whole sector negatively.
This article first appeared on GuruFocus.