Chip stocks mixed after Trump's plans to kill $52.7 billion chips subsidy law

Shares in U.S. chipmakers oscillate between green and red in early 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

Shares of Intel INTC.O down 3% on the news as co already grapples with tepid demand for traditional data center chips

Marvell Technology MRVL.O slips 1.4%, reversing premarket gains

"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

Nvidia NVDA.O and Broadcom AVGO.O hold steady, rising 0.5% and 3%, respectively

AI server maker Super Micro Computer SMCI.O was up 3.1%

"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 lately come under pressure due to concerns about hefty AI spending, while escalating global trade war has also weighed on the sector

Including session's moves, Philadelphia Semiconductor Index .SOX down about 7% YTD