The U.S. government plans to withdraw a rule introduced under the Biden administration that had aimed to restrict exports of advanced AI chips — a policy that had posed challenges for major semiconductor companies like Nvidia (NVDA) and AMD (AMD).

Shares of Nvidia Corp. climbed toward the end of trading Wednesday after a report that the Trump administration is not planning to implement artificial-intelligence rules controlling chips shipments that was introduced by the Biden administration.

Nvidia shares rose on Wednesday on a report that the Trump administration plans to revise a set of chip trade restrictions called the "AI diffusion" rule. The chip restrictions were scheduled to take effect on May 15.