Nvidia, AMD rise as U.S. gov't gives details to implement $50B CHIPS for America program
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Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and several other semiconductor stocks rose on Tuesday as the U.S. Department of Commerce unveiled details for implementation of its $50B program meant to boost domestic semiconductor manufacturing.
Known as the CHIPS - Creating Helpful Incentives to Produce Semiconductors- for America program, the incentive plan will target roughly three-quarters of the incentives, or roughly $28B, to establish domestic production of leading-edge logic and memory chips.
This $28B may be doled out to companies in the form of grants, cooperative agreements, subsidized loans or loan guarantees. 
In addition, $11B will be invested in several programs, including the National Semiconductor Technology Center, a National Advanced Packaging Manufacturing Program and new research and development plans. 
The Commerce Dept. said funding documents for companies on how to apply would be available in February 2023.
Both Nvidia (NVDA) and AMD (AMD) shares rose nearly 1% in premarket trading, while Intel (NASDAQ:INTC) gained 0.5%. Other semiconductor stocks also saw modest gains on Tuesday, including Taiwan Semiconductor (TSM), Qualcomm (QCOM), Lam Research (LRCX) and Micron Technology (MU).
The details come nearly one month after President Biden signed the CHIPS Act into law as the U.S. looks to ensure domestic chip production amid rising tensions with China and disruptions caused by the COVID-19 pandemic.
Last month, UBS said both Nvidia (NVDA) and Advanced Micro Devices (AMD) have seen "consistently lower pricing" for their GPUs over the past few months, but the rate of decline has slowed down.