NVIDIA (NASDAQ:NVDA) stocks rose 5.5% on Tuesday midday as CEO Jensen Huang partnered with President Trump in the Middle East to secure significant AI infrastructure agreements, reinforcing NVIDIA’s key position in the global AI landscape.

1. Major AI Infrastructure Deals with HUMAIN in Saudi Arabia

During a summit in Riyadh, NVIDIA unveiled a collaboration with HUMAIN, the AI-focused arm of Saudi Arabia’s Public Investment Fund:

• 500 MW AI Capacity: Over the next five years, HUMAIN aims to deploy hundreds of thousands of NVIDIA GPUs across AI “factories.”

• Anchor Deployment: The initial phase will involve an 18,000-unit Grace Blackwell GB300 supercomputer, designed for developing secure AI models and facilitating digital transformation.

This collaboration establishes NVIDIA’s role in building AI infrastructure in Saudi Arabia, aligning with the nation’s shift towards a knowledge-based economy.

2. Potential UAE Chip Exports Under Discussion

According to Bloomberg, the Trump administration is weighing easing export restrictions to allow the UAE to import up to 500,000 advanced NVIDIA chips each year through 2027:

• G42 Partnership: Around one-fifth of the chips could be allocated to G42 in Abu Dhabi, equating to compute capacity equivalent to 1-1.5 million H100 GPUs.

• Supporting U.S. Firms in the UAE: The remainder would assist American companies, potentially including OpenAI, in expanding AI data center operations within the region.

If approved, these exports would signify a softening of prior chip restrictions, significantly bolstering NVIDIA’s footprint in the Gulf region.

3. Current Market Reaction and Analyst Assessments

NVIDIA’s unexpected stock increase plays into its robust performance. Investors will look closely at two data points for sustainability:

• Next Earnings Announcement: Follow NVIDIA’s upcoming earnings report to hear about AI partnerships and margin outlook.

• Analyst Price Target Updates: Monitor live changes in brokerages’ outlooks to better understand NVIDIA’s long-term growth predictions.

4. Why This Matters

1. Geopolitical Strategy: NVIDIA’s agreements improve U.S. ties with Gulf allies while promoting American technological exports.

2. Competitive Advantage: Strategic AI partnerships deepen NVIDIA’s ecosystem strength and advantage over rivals in the GPU market.

3. Regulatory Developments: Relaxation on chip-export restrictions could open new revenue channels but also introduce regulatory volatility—something to keep an eye on during upcoming earnings calls.

By tracking NVIDIA’s earnings schedule and analyst opinion shifts, investors can strategize for future developments in the company’s AI expansion.