The Trump administration is making a bold bet on AI, slashing red tape to supercharge innovation while locking down America's edge in AI chip production. At the AI Action Summit in Paris, Vice President JD Vance didn't hold backhe warned that over-regulating AI could strangle one of the most powerful technological revolutions of our time. He also called out European governments for stifling American tech firms, arguing that excessive restrictions would cement industry incumbents and kill off competition. This shift could have huge implications for AI giants like Nvidia (NASDAQ:NVDA) and chipmakers like Intel (NASDAQ:INTC), especially as the administration looks to roll back Biden-era export controls.

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At the heart of this strategy? Chips. Right now, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) dominates, producing 90% of the world's most advanced AI processors. It's building new plants in Arizona, but those won't be enough to meet U.S. demand. Meanwhile, Intel has been pushing to become a real player in AI chip manufacturing, but its progress has been mixed. Still, investors are taking noticeIntel stock jumped nearly 7.7% at 12.18pm today. If the Trump administration delivers on its promise to bring AI chip production home, it could shake up the entire semiconductor landscape, creating new winners (and losers) in the race for AI supremacy.

Then there's the global angle. Biden's strict export restrictions, covering over 120 countries beyond China, are still set to take effectbut maybe not for long. Vance hinted that a policy shift could be coming, which would be a massive boost for U.S. AI firms looking to sell their tech abroad. If the administration follows through, companies like Nvidia could regain their status as the go-to AI partner for businesses and governments worldwide. Bottom line? AI's future won't just be decided by who builds the best chipsit'll be shaped by Washington's next move. Investors should buckle up.