Nvidia and AI Stocks Rally on Saudi Partnership Hopes

Nvidia and AI Stocks Rally on Saudi Partnership Hopes

Key Takeaways:

• Nvidia and other AI stocks extended gains following Saudi Arabia deal announcements.

• AMD, Supermicro, Palantir, and Tesla were among the top gainers.

• Analysts anticipate more major AI collaborations in the region.

AI-related stocks surged on Wednesday, building on Tuesday’s momentum after Saudi Arabia revealed new tech partnerships during President Trump’s Middle East visit. The excitement was led by Nvidia (NVDA), which announced it will supply advanced chips to Saudi-backed AI startup Humain.

Wedbush analysts said this move marks “just the beginning” of broader AI opportunities in the Middle East, forecasting larger deals ahead that could include players like Palantir (PLTR) and Tesla (TSLA).

Meanwhile, Bank of America analysts noted that the growing interest from Saudi Arabia could help mitigate the financial impact of U.S. restrictions on chip exports to China. Nvidia previously warned of a potential $5.5 billion hit, while AMD anticipated an $800 million loss due to the limitations.

In Wednesday’s trading:

• Nvidia rose nearly 4%

• AMD jumped over 5%

• Super Micro Computer (SMCI) soared again after announcing a Saudi partnership

• Palantir gained 1%, following Tuesday’s record close

• Tesla climbed 3%

The momentum suggests rising investor confidence in global demand for AI technologies, especially in emerging markets.