Wall Street Chip Rally, Labor AI Plan Hit Australian Shares

Australian share futures inched into the green Tuesday. The move followed a Wall Street rally led by semiconductor stocks. Chip names surged overnight, with Nvidia and AMD leading the gains.

The Australian Labor government plans to intervene on the AI boom, according to reports. The intervention includes new rules for AI development and deployment, the reports said. The plan introduces regulatory risk for Australian companies building or using AI models.

The chip rally lifted futures. The regulatory signal adds risk for tech stocks. The global AI demand story has lifted valuations for companies like Xero, WiseTech, and Altium.

The Wall Street chip surge extended a year-to-date rally driven by AI spending. The Australian market's tech sector has been a laggard.

The Labor government's intervention follows a global trend of AI regulation. The European Union recently passed the AI Act, and the US has proposed executive orders.

The session opens with futures up 0.1%. The government has not yet released details of the intervention.