Nvidia's Stock Soars on Major AI Partnerships and U.S.-China Trade Developments

Nvidia Leads Chips Stocks Higher on Optimism About New Partnerships, Trade Deals

Kara Greenberg is a senior news editor for Investopedia, where she does work coordinating, writing, assigning, and publishing multiple daily and weekly newsletters. Prior to joining Investopedia, Kara was a researcher and editor at The Wire. Earlier in her career, she worked in financial compliance and due diligence at Loomis, Sayles & Company, and The Bank of New York Mellon. Shares of Nvidia (NVDA) and other semiconductor stocks surged Tuesday amid optimism about new partnerships and trade deals. Nvidia's stock jumped over 6% in recent trading, and Advanced Micro Devices (AMD) shares were up 4% after the companies said they would supply semiconductors to Saudi Arabian AI startup Humain, as part of initiatives announced as President Trump kicked off a four-day trip to the Middle East, starting in Saudi Arabia. As part of Nvidia's partnership with Humain, which CEO Jensen Huang reportedly announced on stage at an event in Riyadh, the company said it will deploy "several hundred thousand" of Nvidia's most advanced GPUs over the next five years, starting with an 18,000 GB300 Grace Blackwell AI supercomputer with Nvidia's InfiniBand networking technology. Meanwhile, AMD said it and Humain would invest up to $10 billion over the next five years to build out AI computing centers "stretching from the Kingdom of Saudi Arabia to the United States." The announcements come as President Trump reportedly looks to secure $1 trillion in investment and trade pledges from Saudi Arabia, with plans to visit Qatar and the United Arab Emirates as well during his trip. The White House didn't immediately respond to an Investopedia request for comment on the chip partnerships. Shares of Broadcom (AVGO), Micron Technology (MU), and other chip stocks were also higher in recent trading, driving the PHLX Semiconductor Index (SOX) up about 3%, extended Monday's gains after the U.S. and China agreed to lower tariffs on each other's imports for 90 days.

Nvidia Returns to $3 Trillion Club as Stock Surges on Saudi AI Partnership

Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Nvidia (NVDA) leaped back into the $3 trillion club on Tuesday as its stock shot up following the announcement of a major deal with a state-backed Saudi Arabian AI company. Nvidia shares rose nearly 6% to close just under $130. The gains put Nvidia's market capitalization at nearly $3.2 trillion, more than every other U.S. company aside from Microsoft (MSFT) and Apple (AAPL). Nvidia on Tuesday announced a partnership with Humain, an AI subsidiary of Saudi Arabia's sovereign wealth fund. Nvidia will sell Humain "several hundred thousand" advanced GPUs over the next five years, starting with an AI supercomputer powered by 18,000 GB300 chips. The announcement coincided with the beginning of President Trump's four-day tour through the Middle East, the first major international trip of his second term. Nvidia became only the third U.S. company to reach a $3 trillion market value in June 2024. The AI chipmaker's path to that milestone looked very different than the two companies that preceded it, Microsoft and Apple. Its shares began a near-constant $3 trillion ascent in late 2022 when the release of ChatGPT sparked the generative AI boom. It was around the time Nvidia topped $3 trillion that the stock's meteoric rise gave way to a more volatile sideways drift. Still, it competed with Apple and Microsoft for the title of the world's most valuable company throughout the remainder of the year before its market cap topped out at about $3.66 trillion in early January. The stock has been on a wild ride since. The company lost about $1.3 trillion in value between early January and early April as Wall Street questioned both the economics of AI and how President Trump's trade war with China would affect sales. The stock has rebounded in the last month, driven higher by solid earnings reports from big tech and the White House's softened stance on tariffs. Nvidia is set to report its first-quarter results later this month, on May 28.

What's Going On With NVIDIA Stock Tuesday? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA shares are trading higher Tuesday. The stock may be moving on continued momentum after the U.S. and China on Monday agreed to a reduction in most tariffs on each other's goods. What To Know: The deal will lower U.S. tariffs on Chinese imports from 145% to 30% and Chinese levies on U.S. goods from 125% to 10% for a three-month period. The revised U.S. tariffs consist of a 10% base rate on all imports, plus an additional 20% tariff implemented earlier this year by President Donald Trump in response to claims that China is manufacturing chemicals associated with fentanyl. On the U.S. side, the talks were led by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, while Vice Premier He Lifeng led the discussions for China. Bessent said at a news conference that, "We concluded that we have shared interests, and we both have an interest in balanced trade." What Else: NVIDIA announced a strategic partnership with HUMAIN on Tuesday aimed at establishing Saudi Arabia as a leader in artificial intelligence (AI) and GPU cloud computing. As part of its plan to build AI factories in Saudi Arabia, HUMAIN will deploy an 18,000-unit NVIDIA GB300 Grace Blackwell AI supercomputer powered by NVIDIA InfiniBand networking. HUMAIN also plans to use the NVIDIA Omniverse platform as a multi-tenant system to support development in AI and robotics. Nvidia is also set to report first-quarter earnings on May 28 after the market closes. Analysts estimate earnings per share of 89 cents and revenue of $43.07 billion, per data from Benzinga Pro. See Also: Is Cheesecake Factory Gaining or Losing Market Support? NVDA Price Action: At the time of writing, NVIDIA stock is trading 5.56% higher at $129.84, according to data from Benzinga Pro. Image: via Shutterstock NVDANVIDIA Corp$129.555.33%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum78.55Growth94.97Quality93.92Value7.13Price TrendShortMediumLongOverviewGot Questions? AskWhich tech stocks may benefit from tariff reductions?How could NVIDIA leverage U.S.-China trade talks?What industries will thrive from lower tariffs on imports?Which companies are positioned well for AI growth in Saudi Arabia?Will GPU manufacturers see increased demand after the partnership?How might HUMAIN's initiatives boost NVIDIA's revenue?What impact will NVIDIA's earnings have on investor sentiment?Which sectors could see shifts due to U.S.-China trade relations?Are there opportunities in cloud computing post-NVIDIA's announcement?What implications do tariff changes have for consumer goods companies?Powered ByMarket News and Data brought to you by Benzinga APIs

Two Key Developments Sparked a Rally for Nvidia Stock on Tuesday | The Motley Fool

The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that the company could gain greater access to two important markets. A story broke late Monday that the Trump administration was considering a deal that would involve a large-scale sale of AI-centric chips to G42, a company located in the United Arab Emirates, according to a report in The New York Times. The deal could send hundreds of thousands of graphics processing units (GPUs) to the Emirati AI specialist and its U.S. partner, OpenAI. Then, less than 24 hours later, Nvidia announced a strategic partnership with Saudi Arabian company Humain to sell more than 18,000 AI-centric chips. These state-of-the-art GB300 Blackwell chips will power a 500-megawatt data center in the Middle Eastern country. These reports come on the heels of the Trump administration's decision to rescind the so-called AI Diffusion Rule, which would have limited the sale of Nvidia's most advanced processors in the region. Investors have been concerned that stricter controls on the sale of GPUs to companies outside the U.S. would hamstring Nvidia, casting doubt on the company's potential for future growth. The willingness of the Trump administration to revise these rules seems like it is opening up new opportunities for Nvidia. And at just 29 times next year's expected earnings, Nvidia stock is attractively priced.

Why Nvidia Stock Surged Higher Again Today | The Motley Fool

The recovery in Nvidia (NVDA 6.22%) stock continues again today. After plunging more than 30% from 2025 highs, shares of the advanced semiconductor company have been staging a comeback in recent weeks. Today's move comes as CEO Jensen Huang attends the Saudi Arabia-U.S. investment forum along with other business leaders and President Trump. Huang has already made that visit lucrative for Nvidia. Investors heard the news of a new business deal for the artificial intelligence (AI) leader and pushed Nvidia shares higher by 5.6% as of 11:45 a.m. ET. Nvidia announced a deal to sell more than 18,000 of its latest Blackwell chips to Saudi Arabian company Humain for hyperscale AI data centers. That deal is just the first phase of a new partnership. Humain plans to be a leading Saudi builder of AI infrastructure that will deploy AI models and other digital platforms. Nvidia will participate in much of that growth. Humain will also utilize Nvidia's Omniverse cloud platform to power applications in a new 500-megawatt data center. Tareq Amin, CEO of Humain, stated, "Our partnership with Nvidia is a bold step forward in realizing the Kingdom's ambitions to lead in AI and advanced digital infrastructure." That's not the only news that has Nvidia shareholders excited today. The White House also announced $600 billion worth of Saudi Arabian investments in the U.S. That includes a planned $20 billion investment in AI data centers and energy infrastructure. While Nvidia wasn't mentioned by name in the announced $600 billion commitment, it stands to reason that it will be involved in supplying chips and other products for the increasing growth of data centers and AI infrastructure in the U.S. going forward. All of that news has investors believing that Nvidia still has a long runway for growth. There is no reason to dispute that belief, and investing in Nvidia stock now looks to be a good bet.

Nvidia leads premarket gains after deal with Saudi Arabian AI firm By Investing.com

Investing.com -- Nvidia (NASDAQ:NVDA), the semiconductor giant, is leading the way in premarket trading, with its shares set to extend gains following a deal to supply chips to Saudi Arabian AI company, Humain. The chips will be used for a substantial data center project. This news follows a week in which Nvidia's shares have already surged approximately 11%. This deal is part of a wave of tech investments and agreements coinciding with the visit of U.S. President Donald Trump to Saudi Arabia. This visit has boosted stocks, with a notable rise on Tuesday. Among the group known as the 'Magnificent Seven', Nvidia saw a premarket increase of 2.1%. Other companies in this group also experienced premarket movement. Tesla (NASDAQ:TSLA) saw a 2% rise, Alphabet (NASDAQ:GOOGL) increased by 0.4%, and Meta (NASDAQ:META) experienced a 0.3% increase. Meanwhile, Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) all saw a slight decline of less than 1%. The S&P 500 and Nasdaq 100 have also managed to erase their 2025 drop, sparking a rebound in the wake of renewed trade optimism.