nvidia eyes uae: half a million ai chips headed to the gulf

2025-05-16 nvidia

Abu Dhabi, Friday, 16 May 2025.
nvidia is reportedly close to finalizing a deal to export 500,000 advanced ai chips annually to the united arab emirates starting in 2025. this move could establish the gulf region as a significant global ai hub. the deal underscores nvidia’s growing influence and reach within the rapidly expanding ai technology market. the uae is poised to become a major player in the ai landscape. this agreement could reshape the global distribution of ai capabilities.

Nvidia’s stock market surge

Nvidia’s stock market performance reflects growing investor confidence. On May 13, 2025, Nvidia’s stock (NVDA:NASDAQ) surged by 5.63%, reaching its highest level since February 27 [8]. This increase occurred amidst broader market fluctuations, where the S&P 500 Index managed to recover all its losses for the year [8]. The Nasdaq Composite Index also saw a significant rise of 1.61%, closing above 19,000 points for the first time since February 26 [8]. These market movements underscore Nvidia’s pivotal role in driving the AI narrative and attracting investor attention [8].

trump’s role in ai expansion

The Trump administration is actively facilitating AI development in the Middle East. Trump’s recent visit to Saudi Arabia included announcements of a $600 billion investment package [2]. This package encompasses AI infrastructure partnerships involving major companies such as Nvidia, AMD, and Qualcomm [2]. The administration has also reportedly brokered a preliminary agreement with the UAE to import 500,000 Nvidia AI chips annually [3][4]. This agreement, potentially lasting until 2030, signifies a major shift in AI export regulations [3][4].

competitive advantages for nvidia

Nvidia is strategically positioned to capitalize on the growing demand for AI chips. The deal with the UAE could last until 2027 or potentially 2030 [3][4]. Approximately 20% of the chips, about 100,000 annually, are earmarked for G42, a UAE-based AI company [3]. The remaining chips will support US companies like Microsoft and Oracle in establishing data centers within the UAE [3]. This agreement allows Nvidia to expand its client base beyond the existing data center operators [2].

saudi arabia’s ai ambitions

Saudi Arabia is making substantial investments in AI, further benefiting Nvidia. Humain, a subsidiary of Saudi Arabia’s Public Investment Fund, is committed to constructing AI factories using Nvidia GPUs [2][3]. Bank of America Securities analyst Vivek Arya anticipates these deals to generate between $2 billion and $3 billion annually for Nvidia, potentially totaling $15 billion to $20 billion over several years [3]. These investments aim to establish Saudi Arabia as a prominent global AI power [2].

market expert perspectives

Market analysts view these developments positively for Nvidia’s stock. Nvidia’s current price stands at $133.04, exceeding its 200-day moving average of $125.33 [3]. Traders often interpret a stock price above its moving average as a bullish signal [3]. Jamie Cox, an executive partner at Harris Financial Group, suggests that the combination of trade news, the Saudi Arabia chip deal, and declining inflation could prompt the Federal Reserve to consider earlier interest rate cuts, further boosting market sentiment [8].

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