We recently published a list of 10 AI Stocks in the News Today. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks in the news today.
The Trump administration may soon abandon the tiered approach to accessing advanced AI chips and replace it with a global licensing regime with government-to-government agreements. Developing such a structure would likely conform to President Donald Trump’s broader trade strategy of making deals with individual countries. The US would then have an easier time leveraging the American-designed chips in negotiations.
“There are some voices pushing for elimination of the tiers. I think it’s still a work in progress.” — -Wilbur Ross, who served as Commerce secretary during the first Trump administration.
Changes to the Biden-era rule will potentially limit global access to AI chips and the tiers that previously helped determine how many advanced semiconductors a country could obtain.
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Provided that the plans to change these rules follow through, these US chips would have the power to steer trade talks. The rule, known as the Framework for Artificial Intelligence Diffusion, was issued by the U.S. Department of Commerce in January. Companies must conform to its restrictions starting on May 15.
Other possible changes being considered in the Trump administration include a lower threshold for an exception to licensing. Currently, orders under the equivalent of about 1,700 of Nvidia’s H100 chips do not count toward country caps. Rather, the government needs to be notified of the order with no licence necessary.
The administration is considering making the cutoff orders under the equivalent of 500 H100 chips. All of these possible changes by the Trump administration aim to make the rules stronger yet simpler. However, a few experts are of the belief that removing the tiers would make the rule even more complicated.
Many companies and the industry as a whole don’t approve of the rule in the first place, stating that limiting access to chips would provoke countries to buy from China instead. Seven Republican senators even sent a letter to Lutnick, the United States Secretary of Commerce, in mid-April to have the rule withdrawn. The letter stated that the restrictions would incentivize buyers, especially in Tier 2 countries, to turn to China’s “unregulated cheap substitutes.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
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NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. One of the biggest analyst calls for Monday, May 5, was for Nvidia Corporation. Melius reiterated stocks such as Broadcom, Nvidia, IBM, and Microsoft as “Buy,” stating that the firm is standing by a slew of tech stocks.
Despite earnings being weeks away, analysts are quite reassured that Big Tech companies are still eager to continue spending billions of dollars on the development of artificial intelligence. In particular, the firm noted that upside in capex spending for this year and 2026 “is even more important now” for Nvidia because the company’s business in China has been curbed again by the Trump administration’s restrictions on its H20 chips.
The curb could cost the company more than $15 billion in annualized revenue. However, Nvidia “could see support as the year progresses from the hyperscaler purchases and from others like CoreWeave and Elon Musk’s companies”.
Nvidia is also seeking transparency on the Biden administration’s “AI-diffusion” rule, anticipated to go into effect in the coming weeks.
“We are optimistic Trump’s team will make the rule simpler but are growing more concerned that it will take a similarly restrictive approach that companies like Nvidia will need to navigate,” The firm sees revenue upside for the April quarter” coming from sales of its H20 chip in China that occurred before the new rules went into place.
Analysts also expect that the company saw “brisk sales” of its new Blackwell chip to U.S. hyperscale cloud providers. It further noted that the H20 ban could cause a $4 billion to $5 billion sequential hit to revenue for Nvidia in the July quarter.
“As a result, Nvidia’s sales may be flattish [sequentially] in the July quarter but then return to almost double-digit [quarter-over-quarter] growth in October and January due to Blackwell deliveries into Hyperscalers and Tier 2 clouds.”
Overall, NVDA ranks 4th on our list of AI stocks in the news today. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
