Nvidia's stock soared 6% after Saudi Arabia announced plans to purchase 18,000 advanced AI chips

From Yahoo Finance: 2025-05-14 18:15:00

Shares of Nvidia surged nearly 6% as Saudi Arabia announced plans to purchase 18,000 of the company’s most advanced AI chips. The deal with HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund, comes amid reports of eased restrictions on AI chip exports to the Middle East. This geopolitical win for Nvidia follows challenges in selling chips to China. Despite restrictions, global demand for AI compute is high, with the Middle East offering a significant opportunity. Nvidia’s focus on “sovereign AI” aligns with the Saudi deal, while hopes for a U.S.-China trade agreement could reopen sales to China. Investors have seen a 43% surge in Nvidia shares and continue to hold the company in various ETFs.

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