Chip stocks steady despite Trump's plans to kill $52.7 billion chips subsidy law

Shares of U.S. chipmakers up in premarket trading

President Donald Trump on Tuesday said to get rid of $52.7 billion semiconductor chips subsidy law and "use it to reduce debt"

The CHIPS and Science Act was signed by then President Joe Biden in August 2022

"It's very popular (Act) and there are a lot of senators that are happy about the money that's coming to the states," says Art Hogan, chief market strategist at B Riley Wealth in NY

"The markets are starting to take him seriously but not literally, and we'll have to wait and see if that's the right move," Hogan adds

Chipmakers were largely up; Nvidia NVDA.O, Broadcom AVGO.O, Marvell Technology MRVL.O advance between 1.7% and 2.3% premarket

AI server maker Super Micro Computer SMCI.O was up 3.7%

"Trump's speech was wide ranging and it's hard to know exactly the impact of scrapping the act and how much debt it will actually pay off," says Kathleen Brooks, research director at XTB

U.S. chipmakers have come under pressure due to concerns about hefty AI spending, while escalating global trade war has also weighed on the sector

As of last close, Philadelphia Semiconductor Index .SOX was down 7.5% YTD