Anusuya Lahiri
3 min read
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The Trump administration forged a preliminary deal with the United Arab Emirates involving importing 500,000 of Nvidia Inc.’s (NASDAQ:NVDA) advanced AI chips annually.
The deal was at least through 2027 but could be in place until 2030, Reuters reported on Wednesday, citing unnamed sources familiar with the matter.
Under the deal, 20% of the chips, or 100,000 of them per year, will serve UAE’s tech firm G42, while the rest would be split among U.S. companies, including Microsoft Corp (NASDAQ:MSFT) and Oracle Corp (NYSE:ORCL) that might also seek to build data centers in the UAE.
Also Read: Nvidia, AMD And Other Chip Stocks Gain As Trump Plans To Ease AI Chip Export Rules
U.S. President Donald Trump is on a tour of the Gulf region this week and on Tuesday announced a $600 billion investment package from Saudi Arabia. The package includes massive AI infrastructure partnerships with Nvidia, Advanced Micro Devices (NASDAQ:AMD), and Qualcomm Inc (NASDAQ:QCOM).
Saudi Arabia’s Public Investment Fund subsidiary HUMAIN will construct AI factories across Saudi Arabia over the next five years, powered by Nvidia’s most advanced GPUs.
The factories’ projected total capacity is up to 500 megawatts. HUMAIN will also introduce Saudi Arabia’s first Nvidia Omniverse Cloud platform.
Bank of America Securities analyst Vivek Arya expects the HUMAIN deals to range between $2 billion and $3 billion annually, likely starting in 2025, with a total of between $15 billion and $20 billion over a multi-year period.
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at NVIDIA, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For NVIDIA, the 200-day moving average sits at $125.33, according to Benzinga Pro, which is below the current price of $133.04. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
