Nvidia (NVDA) stock jumped 3.7% midday Wednesday, extending its gain from the prior day, when shares rose nearly 6% and the AI chipmaker’s market cap surpassed $3 trillion for the first time since February.

The gains come as US chipmakers, including Nvidia, announced billions of dollars' worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday.

Nvidia said it will supply several hundred thousand of its AI chips to Saudi Arabia’s AI venture Humain over the next five years, beginning with the sale of one of its latest Grace Blackwell AI supercomputers using 18,000 of its advanced GB300 chips. Humain is a new AI venture owned by Saudi Arabia’s $925 billion Public Investment Fund and chaired by Crown Prince Mohammed bin Salman. It was launched just a day ahead of Trump’s visit to the country.

Bank of America (BAC) analysts estimated the total value of the deal at $7 billion and raised its price target on Nvidia stock to $160 from $150 in a note to investors Wednesday morning.

Read more about Nvidia's stock moves and today's market action.

Also bolstering Nvidia shares, a report from Bloomberg on Tuesday indicated the Trump administration may cut a deal to allow the United Arab Emirates to purchase "more than a million" of Nvidia's AI chips.

Fellow US chipmakers Advanced Micro Devices (AMD) and Qualcomm (QCOM) also unveiled deals to supply chips to Humain for its ambitious AI data center plans over the coming years. AMD’s deal was valued at $10 billion.

Bernstein analyst Stacy Rasgon said the news is a good sign of demand for AI hardware.

“For investors worried about AI capex sustainability, we now have another deep pocketed customer willing and capable to spend large amounts of money on a clearly strategic push as Saudi Arabia attempts to position itself as a regional and global AI hub,” he wrote in a note to investors early Wednesday.

“While we shall see how much of the announced programs actually come to pass, Tuesday’s actions have the potential to act as support against fears of a capex peak.”

Investors have scrutinized whether US Big Tech companies can sustain unprecedented levels of spending on AI infrastructure while companies are still figuring out how to fully monetize their AI products.

Separately, Super Micro Computer (SMCI), a server maker that uses Nvidia’s AI chips and server designs, announced a $20 billion deal with Saudi Arabian data center company DataVolt. That stock, which closely tracks with Nvidia’s moves, rose 16% on Tuesday and more than 18% midday Wednesday.