Nvidia stock surges 15% on international AI deals
Nvidia stock rose more than 15% over the past five trading days. The jump is tied to optimism about its global AI business, with major new deals announced in Saudi Arabia and the United Arab Emirates.
Ahead of its May 28 earnings report, Nvidia shares are gaining momentum, fueled by investor excitement around expanding international partnerships.
Saudi Arabia signs major AI chip deal with Nvidia
On Tuesday, Nvidia revealed a long-term partnership with Saudi Arabia’s new AI venture, Humain. Owned by the country’s $925 billion Public Investment Fund, Humain will receive hundreds of thousands of Nvidia AI chips over the next five years.
The deal marks one of the largest AI infrastructure agreements in the region, and positions Nvidia as a top supplier in the Middle East’s growing AI ecosystem.
Trump clears UAE deal to import Nvidia chips
A second boost came Friday as President Trump confirmed a deal allowing the UAE to import 500,000 of Nvidia’s Hopper AI chips annually. The chips are part of Nvidia’s prior generation, but still critical for AI development and deployment in emerging tech markets.
Trump’s administration appears eager to support Middle Eastern AI growth, benefitting U.S. chipmakers like Nvidia and Qualcomm.
Stock climbs despite early 2025 headwinds
Nvidia began 2025 on shaky ground. A low-cost AI model from Chinese startup DeepSeek raised doubts about Big Tech’s massive AI infrastructure spending. Concerns deepened when Microsoft hinted at slowing data center investments.
But recent data shows strong AI-related spending continues. Microsoft reaffirmed its $80 billion capital expenditure plan, and Meta raised its AI investment target to $72 billion for the year.
Eased tariffs and AI rules boost Nvidia outlook
Nvidia also benefited from favorable policy shifts. CFRA analyst Aaron Siegel pointed to lighter tariffs on China and the cancellation of the AI diffusion rule as key reasons for the improved stock outlook.
The U.S. and China announced a trade truce this week, and Nvidia, which gets 13% of its revenue from China and Hong Kong, saw its stock rise in response.
Big Tech and governments embrace Nvidia’s AI tech
Beyond the Middle East, Nvidia continues to lead AI infrastructure globally. Governments and tech giants alike are choosing Nvidia as the core supplier of high-performance chips for machine learning, language models, and next-gen applications.
This reinforces the company’s dominance as AI spending accelerates globally, despite recent fears of oversaturation in the sector.
Nvidia poised for strong Q2 as demand holds steady
With new international deals signed and confidence from key clients like Microsoft and Meta, Nvidia looks well-positioned heading into its earnings report.
Investors will closely watch whether the momentum from these AI wins will translate into stronger-than-expected quarterly results.