Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
Nvidia has had a great week, rising from $116 to $135 per share. The rally is partly due to easing trade relations between the US and China. Perhaps more importantly, Saudi Arabia and the UAE have been given the green light from the White House to purchase billions of dollars worth of Nvidia chips. Currently, there are export restrictions on the most powerful Nvidia cards because of supposed "national security" concerns.
The Saudis want to turn themselves into a regional hub for data centres and will buy more than 18 000 Nvidia chips over the next five years. They want to build massive data centres in the desert because of 'Sovereign AI'. The theory is that AI is going to be so central to life going forward that you don't want to outsource this capability to other nations.
Having a new set of deep-pocketed clients is great news for Nvidia. The extra chip sales will bolster sales on top of the already strong demand from the US tech giants.
