Stocks of NVIDIA, a major player in the graphics chip market, rose by 6% in afternoon trading. This increase followed the announcement that NVIDIA will supply over 18,000 AI chips—the GB300 Blackwell chips—to Saudi Arabia’s Humain, which plans to use them in a 500-megawatt data center project. Moreover, there’s potential for the sale of “hundreds of thousands” more chips over the next five years.
In a separate development, the Trump administration is weighing a significant sale of AI-focused chips to the UAE-based G42, along with its US partner OpenAI. This transaction could involve hundreds of thousands of high-performance NVIDIA GPUs. Together, these developments indicate a growing demand for NVIDIA’s advanced technology.
The overall market gained momentum after the Bureau of Labor Statistics released data showing that inflation in April 2025 was slightly better than anticipated. The Consumer Price Index (CPI) increased by 0.2% from the previous month, aligning with expectations, while headline inflation rose 2.3% year-over-year, just shy of the estimated 2.4%. Although the market reaction wasn’t overly enthusiastic, it remained positive, particularly in the Nasdaq, which saw a 1.7% increase, buoying several tech stocks.
There was also a notable uptick in profits, largely tied to an agreement to suspend 90-day tariffs, hinting at a potential easing of ongoing trade tensions and the worries of a protracted trade war.
NVIDIA’s shares wrapped up the day at $129.83, reflecting a 5.6% increase from the previous closure.
Now, some might wonder if it’s time to invest in NVIDIA. It’s worth noting that the company’s stock has been quite volatile, with 35 instances of over 5% movement last year. Today’s fluctuations suggest the market finds the news significant, yet they don’t fundamentally alter the business’s outlook.
However, just a few weeks ago, shares fell by 5% as concerns mounted. President Trump had criticized the Federal Reserve’s slow approach to interest rate cuts, cautioning that such delays could hinder economic growth. His remarks contributed to heightened market tension and fears of political interference in economic policy.
Meanwhile, Fed Chairman Jerome Powell maintained a cautious stance, emphasizing the challenge of achieving both stable employment and price stability in the current environment marked by trade uncertainties. Investor sentiment was further dampened as there were no solid advancements in trade discussions, especially concerning US-China relations.
Overall, as the first quarter revenue season for 2025 approaches, the outlook seems more uncertain, with intertwined monetary policy and unresolved trade issues impacting business confidence.
NVIDIA’s shares have declined by 6.4% year-to-date, currently priced at $129.51, which is about 13.3% lower than its 52-week high of $149.43 from January 2025.
It’s becoming increasingly clear—whether one likes it or not—that generative AI is set to transform how large companies operate. While both NVIDIA and AMD are nearing their all-time highs, there are also lesser-known but potentially lucrative semiconductor stocks benefiting from the AI surge.
