Nvidia Soars 3.07% on Saudi AI Deal, Policy Shift

On May 14, 2025, Nvidia's stock rose by 3.07% in pre-market trading, reflecting strong investor confidence in the company's recent strategic moves and market positioning.

Nvidia has secured a significant order from Saudi Arabia, agreeing to supply over 18,000 of its top-tier AI chips to Humain, a newly established AI company backed by the Saudi Public Investment Fund (PIF). This deal is part of a broader initiative to build a data center with a capacity of up to 500 megawatts, utilizing Nvidia's advanced GB300 Blackwell chips. The partnership underscores Nvidia's growing influence in the global AI market and its role as a key player in the development of AI infrastructure.

Additionally, the U.S. has taken steps to revoke the AI Diffusion Rule, a policy implemented by the Biden administration that aimed to restrict the export of AI chips. This move is expected to ease regulatory burdens on companies like Nvidia, potentially boosting their market prospects. The decision aligns with the Trump administration's focus on fostering innovation and strengthening U.S. leadership in technology.

Nvidia's strategic partnerships and the favorable regulatory environment are likely to drive further growth and investor interest in the company. The combination of these factors positions Nvidia as a leader in the AI chip market, with a strong outlook for future developments and market expansion.