Key Stats for Nvidia Stock
- Today’s Price Change: 6%
- Current Share Price: $130
- 52-Week High: $153
- NVDA Stock Price Target: $163
What Happened?
Nvidia (NVDA) stock jumped more than 5% in Tuesday trading after CEO Jensen Huang announced a major deal to sell over 18,000 of the company’s latest Blackwell AI chips to Humain, a Saudi Arabian company.
The announcement was made during a White House-led trip to the region that included President Donald Trump and other prominent CEOs. The NVDA stock price surge reflects investor enthusiasm about this significant international expansion of Nvidia’s AI chip business.
According to details shared at the Saudi-U.S. Investment Forum in Riyadh, the advanced GB300 Blackwell chips, among Nvidia’s most cutting-edge AI processors, were only officially announced earlier this year. They will power data centers totaling 500 megawatts in Saudi Arabia.
Humain, which Saudi Arabia’s Public Investment Fund will own, plans to eventually deploy “several hundred thousand” Nvidia graphics processing units as part of its AI development initiative.
As Huang stated at the event, “Saudi Arabia is rich with energy, transforming the energy through these giant versions of Nvidia AI supercomputers, which are essentially AI factories.”
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What the Market Is Telling Us
The strong positive reaction in Nvidia stock price suggests that investors view this deal as confirmation of the chip maker’s continued dominance in the global AI chip market.
This announcement comes at an interesting time, as the Department of Commerce recently stated it would replace “President Joe Biden’s rule” regarding chip exports with a “much simpler rule.”
Nvidia has been required to seek export licenses for its AI chips since 2023 due to national security concerns, making this Saudi deal a potential indicator of a shifting regulatory landscape under the Trump administration.
The market is also responding to the scale of Humain’s commitment, with AMD simultaneously announcing that it too would supply chips to the Saudi company as part of the same 500-megawatt AI capacity project, which reportedly involves a $10 billion investment.
The ripple effect in the semiconductor sector is evident, with AMD’s 4% climb indicating broader optimism about AI chip demand.
President Trump’s public praise of Huang at the event, specifically contrasting his attendance with Apple CEO Tim Cook’s absence, further underscores the growing geopolitical significance of AI chip supply.
As countries worldwide compete for access to these critical components for developing AI capabilities, Nvidia’s position as a technological leader and diplomatic asset continues to strengthen, potentially supporting the Nvidia stock price trajectory in the long term.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
