Super Micro Computers partners with Saudi data center for $20 billion
- Major U.S. stocks experienced growth amid President Trump's Middle East visit aimed at securing significant economic partnerships.
- Super Micro Computers' shares surged nearly 30.6% following a $20 billion partnership announcement with a Saudi data center.
- The trip has long-term implications for U.S.-Saudi economic relations, affecting defense and technology markets.
In May 2025, several major U.S. companies benefitted significantly from President Donald Trump’s visit to the Middle East. Trump arrived in Saudi Arabia on a four-day trip focused on announcing various economic investments in defense, aviation, and artificial intelligence. During this time, numerous deals were executed, including significant partnerships between U.S. firms and Saudi companies, collectively worth hundreds of billions of dollars. One of the standout success stories was Super Micro Computers, which announced a ground-breaking $20 billion partnership with Saudi Arabian data center DataVolt. Consequently, the company's stock soared nearly 30.6% over a span of two trading sessions. Others, like Nvidia, also saw substantial growth, reflecting a general optimism in the technology and defense sectors due to these agreements. Boeing was another notable beneficiary, having achieved a 52-week high following a massive $96 billion deal to supply 210 jets to Qatar Airways. Trump's trip emphasized economic investments rather than geopolitical strategies, invigorating stock market performance temporarily. Stocks, in general, displayed volatility, as while Trump’s visit spurred investor confidence regarding potential returns on investments, there was also a notable selloff in the markets, particularly on Thursday, May 16, 2025. The broader market, driven by significant declines in stocks from companies like Walmart and UnitedHealth, experienced rallying and pullbacks as investor sentiment fluctuated during this period. Conversely, Trump’s involvement in fostering U.S.-Saudi partnerships set a definitive tone for future U.S. economic relations with the Middle Eastern nation and suggested potential long-term benefits for both parties. The investments collectively pointed towards a strategic shift in how U.S. companies are engaging in foreign markets, especially in sectors pivotal for national security and technological advancement.