Nvidia Stock Surges as Trump Secures Another AI Chip Deal

Nvidia (NVDA) stock climbed today, reflecting investor optimism after news broke of a new artificial intelligence (AI) chip deal tied to President Donald Trump’s recent Middle East tour.

The agreement, part of a broader $600 billion commitment from Saudi Arabia to U.S. companies, includes Nvidia supplying hundreds of thousands of its advanced “Blackwell” AI chips to Humain, a new AI startup backed by Saudi Arabia’s sovereign wealth fund.

This deal follows a turbulent period for Nvidia, which faced a $5.5 billion hit earlier this year due to U.S. export restrictions on its H20 chips to China. However, Trump’s push to expand U.S. tech influence in the Gulf, coupled with his administration’s rollback of certain Biden-era AI chip export curbs, has bolstered Nvidia’s global prospects. The company’s shares rose sharply, building on a 3.6% gain earlier this week, as analysts see Saudi Arabia’s AI ambitions driving significant demand for Nvidia’s GPUs.

Despite challenges like trade tensions and competition from Chinese firms like DeepSeek, Nvidia remains the gold standard in AI infrastructure. With its stock trading at 23 times forward earnings—near a two-year low—long-term investors may see this as a buying opportunity, especially as Nvidia strengthens its foothold in emerging AI markets.

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile, and readers should conduct their own research before making investment decisions.