Nvidia stock (NAS100:NVDA) has rallied after President Trump’s deals in Saudi opened the door for further exports.
The price of NVDA has reached $135.34 after finding a base at $90. The downtrend resistance break around $118 can see the $150 high as a target.
Nvidia announced that it has signed a multi-year AI infrastructure deal with Humain, a startup launched by Saudi Arabia’s sovereign wealth fund. The two parties will build AI-powered factories, driven by hundreds of thousands of Nvidia chips.
Investors are jumping back into NVDA as recent reports also bring hope that the White House will announce a deal that would enable Nvidia to sell its advanced chips in large volumes to the UAE.
These agreements will be vital for the company as they will support revenue that was lost in the export controls with China. The Humaine deal is among the $600 billion investment that Trump has secured on his recent visit to Saudi Arabia.
A research note from Citi said Nvidia’s deal with Saudi Arabia was “a good start to what’ll likely be a new country-to-country negotiation approach by the US government”.
Nvidia is set to release its latest earnings near the end of the month and it’s possible that the stock hovers near the record highs ahead of that date with a make-or-break report that can create a larger high, or a breakout to new highs.
Nvidia has beaten earnings expectations over the last four quarters by an average of 7.59% to 13.73%. The Saudi deal can provide a platform for Nvidia’s revenue and an upside surprise in demand could see the stock continue its run of upside gains over the last years.
In its previous earnings report, the company showed early promise with demand for its new Blackwell range of chips. “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter,” management said.
