Nvidia plans major chip deal with Saudi Arabia's Humain
- Easing trade tensions between the U.S. and China led to a significant surge in technology stocks.
- During a visit to the Middle East, Nvidia announced plans to sell 18,000 AI chips to Humain, enhancing their data center capabilities.
- Nvidia and Tesla's stock prices increased markedly, indicating a bullish sentiment in the tech sector.
In May 2025, easing trade tensions between the United States and China positively impacted the stock market, particularly the technology sector. Notably, President Donald Trump's trip to the Middle East coincided with a surge in tech stocks, including significant gains for Nvidia and Tesla. Both companies experienced notable stock increases, with Nvidia’s shares climbing 16% and Tesla’s 17% that week. The backdrop of the trip included the announcement of a 90-day pause on tariffs between the U.S. and China, which signaled progress in de-escalating a lengthy trade conflict affecting global investors. As part of the initiatives taking place during the Middle East visit, Nvidia’s CEO, Jensen Huang, revealed plans for a substantial contract involving the sale of over 18,000 AI Blackwell chips to a Saudi Arabian company named Humain. This venture aims to enhance Saudi Arabia's data centers leveraging Nvidia's advanced chip technology. In another tech-related announcement, AMD also disclosed their commitment to providing chips to Humain, indicating a broader momentum for the semiconductor industry in the region. Tesla’s CEO, Elon Musk, who was also present in Saudi Arabia, announced the kingdom's approval for the use of SpaceX's Starlink satellite internet service for both aviation and maritime purposes. Additionally, Musk mentioned initiatives to introduce robotaxis in Saudi Arabia, highlighting the country’s increasing focus on technological advancements and collaborations. The engagement between U.S. tech firms and Saudi Arabia also led to discussions about building an extensive AI campus with various American companies, marking a significant step in establishing the region's tech landscape. Contributing to this surge in the technology sector, President Joe Biden's administration signaled a rollback of restrictive chip export rules that had been implemented under national security concerns, effectively benefiting companies like Nvidia. Analysts observed that the looming chip export regulations had previously hampered Nvidia’s business in one of its critical markets, China, where the AI market is projected to reach $50 billion in the next few years. The combination of favorable trade policies, along with business announcements made during Trump's trip, appears to set a bullish outlook for the tech industry moving forward, with Nvidia and Tesla at the forefront of this expansion.