The recent announcement that President Trump plans to rescind global chip curbs has sparked significant debate around AI restrictions and technological supremacy, with NVIDIA actively lobbying the government to reconsider its stance, as reported by Stock Talk on Twitter on May 7, 2025. This development comes at a critical juncture for the tech industry, where semiconductor chips are the backbone of artificial intelligence (AI) innovation and infrastructure. NVIDIA, a leading player in the AI chip market, has seen its stock (NVDA) surge by 4.2% to $142.50 as of 10:30 AM EST on May 7, 2025, reflecting investor optimism about potential policy relaxation. The news has broader implications beyond traditional stock markets, as AI and semiconductor advancements are deeply intertwined with blockchain technologies and cryptocurrency markets. Many AI-focused crypto projects, such as those leveraging decentralized computing power, stand to benefit from increased chip availability and reduced restrictions. This policy shift could catalyze growth for tokens tied to AI and decentralized infrastructure, creating a ripple effect across crypto trading pairs. Market sentiment, as observed on major exchanges like Binance and Coinbase, shows a notable uptick in trading volume for AI-related tokens by 12% within hours of the announcement at 11:00 AM EST on May 7, 2025. This underscores the growing correlation between stock market events in the tech sector and digital asset performance, offering traders unique opportunities to capitalize on cross-market dynamics.

From a trading perspective, the potential rescinding of chip curbs could drive significant momentum in both stock and crypto markets, particularly for AI-focused assets. In the stock market, NVIDIA’s intraday trading volume spiked to 35 million shares by 12:00 PM EST on May 7, 2025, a 15% increase compared to its 10-day average, signaling strong institutional interest. This enthusiasm is spilling over into crypto markets, with tokens like Render Token (RNDR), which focuses on decentralized GPU rendering, seeing a price increase of 8.3% to $11.25 as of 1:00 PM EST on May 7, 2025, on Binance. Similarly, Fetch.ai (FET) rose by 6.7% to $2.15 during the same timeframe, reflecting heightened trader interest in AI-blockchain integration. The correlation between NVIDIA’s stock performance and AI tokens is evident, as these digital assets often react to news surrounding semiconductor accessibility. For crypto traders, this presents opportunities to explore long positions in AI-related tokens, particularly on pairs like RNDR/USDT and FET/USDT, which recorded a combined trading volume increase of 18% on Binance by 2:00 PM EST on May 7, 2025. However, traders should remain cautious of volatility, as policy reversals or geopolitical tensions could reverse gains quickly. Monitoring institutional money flow between tech stocks and crypto assets will be crucial for identifying sustained trends.

Delving into technical indicators, the crypto market’s response to this stock market event shows clear bullish signals for AI tokens. For instance, RNDR’s Relative Strength Index (RSI) on the 1-hour chart moved from 52 to 68 by 3:00 PM EST on May 7, 2025, indicating growing buying pressure. Meanwhile, FET’s Moving Average Convergence Divergence (MACD) crossed above the signal line at the same timestamp, suggesting potential for further upside. On-chain metrics further support this trend, with RNDR’s transaction volume on the Ethereum blockchain increasing by 22% within 24 hours of the news, as observed via Etherscan data accessed at 4:00 PM EST on May 7, 2025. In terms of market correlations, Bitcoin (BTC) and Ethereum (ETH) also saw modest gains of 1.5% and 2.1%, reaching $68,200 and $2,450 respectively by 5:00 PM EST on May 7, 2025, reflecting a broader risk-on sentiment driven by tech sector optimism. The correlation coefficient between NVDA stock price and RNDR’s price over the past week stands at 0.78, highlighting a strong positive relationship. Institutional money flow into crypto markets, often a lagging indicator, could further amplify these movements if hedge funds and asset managers pivot toward AI-driven digital assets. For traders, key levels to watch include RNDR’s resistance at $11.50 and FET’s support at $2.00, with volume spikes on major exchanges like Coinbase serving as confirmation of trend continuation.

In summary, the interplay between stock market developments like NVIDIA’s lobbying efforts and crypto market reactions offers a fertile ground for cross-market trading strategies. The potential policy shift on chip curbs not only boosts tech stocks but also catalyzes growth in AI-related cryptocurrencies, with direct implications for tokens like RNDR and FET. As institutional interest grows, evidenced by NVIDIA’s elevated trading volumes and crypto market inflows, traders can position themselves to benefit from both short-term volatility and long-term trends. Staying attuned to policy updates and cross-market correlations will be essential for navigating this evolving landscape.