Trump’s Tech Deals Power Big Gains

U.S. President Donald Trump’s latest trade policy changes seem to be behind the latest shift in market mood, with key Big Tech firms reaping the benefits. Let’s take a closer look:

Chip Rules Rewritten

The tech world is once again at the centre of global geopolitics, with the Trump administration tearing up Biden-era rules on AI chip exports and charting a more assertive, deal-driven course. In a major shift, the U.S. has discarded the AI diffusion rule, which had imposed a one-size-fits-all approach to AI chip access, categorising countries into broad tiers. This policy, instituted shortly before Biden left office, drew pushback from key allies and industry giants like Nvidia (NVDA) and Oracle (ORCL).

Now, Trump’s Commerce Department is pivoting towards customised bilateral agreements. The aim seems to be keeping U.S.-made AI technology out of adversarial hands while expanding exports to “trusted” partners, particularly in the Gulf. Saudi Arabia and the UAE, both previously subject to restrictions under Biden’s export controls, are set to benefit from these changes. According to insiders, Saudi Arabia is nearing a landmark deal with Washington that would grant greater access to advanced semiconductors, potentially fuelling its ambitious data centre and AI expansion plans.

This shift could be a windfall for chipmakers like Nvidia and AMD (AMD). Nvidia shares jumped by nearly 5.7% by the ring of the closing bell on 13 May. Buoyed by reports that it will supply Saudi-based Humain with semiconductors for a 500-megawatt AI data centre project, the firm’s market cap reached over $3 trillion. Oracle, too, stands to gain as its planned Malaysian data centre buildout, previously constrained by U.S. rules, may now proceed at full speed.

Still, it’s not carte blanche. The U.S. is drawing a hard line on China, reaffirming that AI chips used in Huawei equipment — anywhere in the world — violate export laws. Trump officials are also looking to tighten restrictions on countries suspected of supplying chips to China, including Malaysia and Thailand.

Adding a layer of complexity, the U.S. is mulling “data embassy” concepts, allowing foreign data centres to operate under international, not local, laws. This could help countries like Saudi Arabia position themselves as AI hubs while staying aligned with U.S. interests.

The takeaway? Trump’s tech diplomacy seems to be more transactional — favouring strategic allies and economic opportunity over rigid global restrictions. (Source: Bloomberg)

Tech Market Turnaround?

Beyond the rapidly materialising deals between the U.S. and key Arab states, a much-needed boost to key tech shares may be coming from the east. Thanks to a surprising three-month tariff truce between America and China, this corner of the market is staging a dramatic comeback, with the Nasdaq almost erasing its year-to-date losses. After weeks of stalling, a sharp 115-point drop in trade duties has reignited investor optimism, and capital is pouring back into tech.

Although Nvidia’s Tuesday share jump was a major driver behind this rally, it wasn’t the only major tech name riding the wave. Apple (AAPL), another tech heavyweight, is emerging as another beneficiary of the easing tensions, with a 1.1% share price boost on the 13th. Although the company previously flagged a potential $900 million tariff-related hit, analysts have downplayed the impact, noting that for a $3 trillion behemoth, it’s a minor dent. A more permanent easing of trade restrictions could clear the path for even stronger performance in the second half of the year.

Still, caution lingers beneath the surface. Analysts warn that even with tariffs easing, many firms are rethinking their dependence on Chinese supply chains. The short-term rally is real, but the long-term restructuring of global tech logistics is only just beginning.

Final Word

All in all, after months of widespread pessimism that sometimes even dipped into fears of a recession, investors and traders alike may be welcoming the Trump administration’s latest policy moves. Whether the momentum will be maintained, however, remains to be seen.

*Past performance does not reflect future results.