Trump's AI Action Plan Boosts Chipmakers: NVIDIA, Intel, AMD and Open-Source Firms

The Trump administration's AI Action Plan aims to advance AI infrastructure development, benefiting major chipmakers like NVIDIA, Intel, and AMD. The plan simplifies administrative barriers and favors open-source AI tech firms. Analysts believe the detailed policy design will solidify the US's leadership in AI and trigger more AI capital expenditures, benefiting domestic investments.

The Trump administration's AI Action Plan, announced on Wednesday, is aimed at advancing AI infrastructure development, with significant implications for major chipmakers like NVIDIA, Intel, and AMD. The plan simplifies administrative barriers and favors open-source AI tech firms, potentially solidifying the U.S.'s leadership in AI and triggering more AI capital expenditures.

The action plan contains dozens of proposed actions, grouped into three pillars: accelerating innovation, building infrastructure, and leading international diplomacy and security. Three executive orders operationalize specific actions from each pillar, including mandates on AI procurement, data center construction, and export of U.S. AI technologies. These actions, while controversial, are seen as beneficial for major tech companies, including chipmakers.

One executive order aims to prevent "woke AI" by mandating the procurement of "truth-seeking" and "ideologically neutral" large language models, which could benefit companies like NVIDIA and AMD that are involved in developing such models. Another order aims to accelerate the construction of AI data centers, potentially benefiting Intel and AMD, which are major suppliers of chips for data centers. The third order promotes and finances the export of U.S. AI technologies, which could benefit NVIDIA, known for its GPUs used in AI applications.

The plan also includes recommendations to invest in R&D, support immigration, and pursue antitrust actions. While the recommendations are seen as positive for long-term AI development, the actual budget proposed by the administration suggests cuts in nondefense R&D by 36%. This could impact the development of AI technologies in the long run.

Analysts believe the detailed policy design will solidify the U.S.'s leadership in AI and trigger more AI capital expenditures, benefiting domestic investments. However, the administration's actions to slash R&D funding and restrict immigration could have long-term negative effects on AI innovation.

In conclusion, the Trump administration's AI Action Plan has significant implications for chipmakers and AI infrastructure development. While the plan includes actions that could benefit major tech companies, the long-term effects on AI innovation remain uncertain. The plan's success will depend on how effectively it balances short-term industry gains with long-term strategic investments in AI.

References:
[1] https://www.technologyreview.com/2025/07/24/1120639/trumps-ai-action-plan-is-a-distraction/
[2] https://semiengineering.com/chip-industry-week-in-review-96/