Nvidia Shares Surge After Securing Major AI Deal in Saudi

Nvidia Secures $3 Trillion Market Valuation Amid Saudi Deal

Nvidia (NVDA) shares surged on Tuesday after the chipmaker announced a major deal to sell hundreds of thousands of AI processors to Saudi Arabia, driving its market valuation to a stunning $3 trillion. Shares closed at $129.93, marking a 5.6% increase. The deal will see many of Nvidia’s high-performance chips allocated to an AI startup backed by Saudi Arabia’s sovereign wealth fund, signaling strong continued global demand for the company’s AI hardware.

Jensen Huang’s Wealth Rises Alongside Nvidia’s Success

The news of the AI hardware deal also resulted in a significant increase in Nvidia CEO Jensen Huang’s personal wealth. According to Forbes, Huang’s net worth rose to approximately $120 billion, up from $80 billion last year. Despite this remarkable increase, Huang remains just outside the top ten wealthiest individuals globally. The deal underscores Nvidia’s position as a leader in the rapidly growing AI hardware space.

Geopolitical Ties and Growth Opportunities in the Middle East

The announcement of the deal coincided with U.S. President Donald Trump’s Gulf visit, which began in Riyadh and includes a stop in the UAE later this week. Nvidia’s deal ties the company’s growth to critical geopolitical relationships in the Middle East, marking a strategic expansion into a region investing heavily in AI technology. The deal highlights the growing demand for Nvidia’s cutting-edge chips in global AI infrastructure.

Investors Eye Future Deals and Policy Outcomes

As the geopolitical landscape continues to shift, investors will be closely monitoring Nvidia’s continued expansion into the Middle East and other regions. With AI infrastructure spending on the rise globally, Nvidia is well-positioned to benefit from these developments. The company’s successful deal in Saudi Arabia may be just the beginning, with more regional partnerships expected in the future as the AI industry grows.