Nvidia stock was rising alongside rival chip makers on the first trading day of Trump's second presidency. In his first hours back in the Oval Office, the president revoked an order on artificial intelligence signed by his predecessor Joe Biden, in a potential sign of what's to come for chip makers under Trump.

Nvidia shares rose 0.89% to $138.93 in premarket trading while futures tracking the benchmark S&P 500 were up 0.4%. U.S. markets were closed on Monday for the Martin Luther King Jr. holiday.

Shares of rival chip makers were also up early Tuesday. Advanced Micro Devices stock rose 0.93%, Broadcom 1.9% and Marvell Technology 2.19%.

Trump rescinded almost 80 executive orders signed by Biden on Monday, including one from October 2023 aimed at limiting AI risks, Barron's reported. The order required AI developers that pose a risk to national security to share any results of safety tests with the government before they are disclosed to the public.

It isn't clear what, if any, practical impact the new administration's backtrack on AI risks disclosures would have on chip makers such as Nvidia and its rivals. It does, however, signal the president's intention to relax AI regulation, which tightened under Biden and that has drawn industry criticism for hindering innovation.

In his final days in office, Biden proposed stricter rules on chip exports -- a move criticized by Nvidia, which said the policy would not serve the intended purpose of promoting national security.

This year is shaping up to be another good one for chip makers, analysts at Citi wrote in a note on Tuesday. They expect 2025 growth to be largely driven by continued AI spending as data center capital expenditure for the biggest cloud service providers is forecasted to increase by 40% this year.

However, while Citi predicts all AI companies to grow in 2025, the broker sees application-specific integrated circuit (ASIC) suppliers such as Broadcom and Marvell growing faster than graphics processor unit (GPU) makers such as Nvidia and AMD.