Nvidia Gains As US Greenlights Major AI Deal With UAE

Nvidia (NASDAQ:NVDA) stock gained on Thursday after Washington approved billions of dollars in Nvidia chip exports to the United Arab Emirates (U.A.E.).

The Commerce Department’s Bureau of Industry and Security issued export licenses for Nvidia under a bilateral AI agreement finalized in May, Bloomberg reported on Thursday, citing unnamed sources familiar with the deal.

The U.A.E. has promised to invest $1.4 trillion in the U.S. over the next decade, dedicated to advancing AI infrastructure and committed to developing a large 5-gigawatt data center in the U.A.E., which will house OpenAI as an anchor tenant.

Also Read: Nvidia Scores Big As Trump Brokers Major AI Export Pact With UAE and US Tech Giants

Nvidia on Thursday traded above its 52-week high of $191.05.

Nvidia CEO Jensen Huang had expressed frustration over the delay of a multibillion-dollar deal to supply advanced AI chips to the U.A.E.

Despite the U.S. Commerce Secretary Howard Lutnick’s urging Abu Dhabi to finalize investments before shipments can proceed, the agreement had stalled.

They announced the deal in May to strengthen U.S. tech influence abroad and counter China’s AI ambitions.

However, delays in the Emirati investments have baffled officials, with some viewing it as a setback in the race to maintain a U.S. tech edge over China.

Huang and White House AI Czar David Sacks see such agreements as vital to advancing the U.S. tech strategy.

Lutnick has conditioned the Commerce Department’s approval on the U.A.E. completing its U.S. investments, also raising concerns about the U.A.E.’s ties to China.

Despite the holdup, Nvidia remains supportive of the Trump administration’s AI strategy.

Nvidia stock gained 41% year-to-date. In the first week of October, Nvidia became the first company to reach a $4.5 trillion cap as Big Tech giants led by Microsoft (NASDAQ:MSFT) remain aggressively invested in their AI ambitions.

Price Action: NVIDIA shares were up 2.66% at $194.14 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Read Next:

Photo by Below the Sky via Shutterstock