Nvidia (S)Nvda)) The shares have jumped nearly 15% in the last five days after a wave of positive news.
The Chipmaker has announced a large deal with Saudi Company Humain, owned by Saudi Arabia’s public investment funds, to work to develop AI models and build data infrastructure using Blackwell GPU.
The multi-year initiative, estimated between $ 15 billion and $ 20 billion, talks about the vision of the Sovereign AI, the side, developing their own AI, using their data, resources and labor.
“The national investment in the computing capacity is a new economic imperative,” said Nvidia CEO Jensen Huang in 2023, “People realize that they cannot afford to export their country’s knowledge, the culture of their country, so that someone else can resume AI back to them.”
Another NVIDIA shares elevator this week came from reports that the US and China agreed to temporarily smaller tariffs, strengthening the technological stock market.
In April, NVIDIA was under pressure as it revealed that it would take a fee of $ 5.5 billion to export its H20 graphics processors to China and other countries. The company also said the delivery of these chips would require a state license.
Related: NVIDIA CEO sounds alarm for China
The H20 chip was designed to comply with US export control under President Joe Biden’s administration, which banned the sale of advanced AI processors in China in 2022 and tightened the 2023 restrictions.
Last year, Nvidia was one of the best winners in Nasdaq, which is 171%. But the action lacks the same growth rate this year, which is only 0.4%, weighed by the unfolding of the cheaper AI model in China Deepeek, the disappointing February revenue and the withdrawal of the market against tariffs and increasing economic uncertainties.
Chris Versace, a Wall Street veterans manager, who runs the Thestreet Pro portfolio, shared his opinion on NVIDIA’s shares this week after my recent rally.
Versace, a 30-year-old veteran of the industry, said the NVIDIA deal with Saudi Arabia “dulls US restrictions on AI chips to China.”
He also pointed to Foxconn technology (S)FXCOF)) which reported a record April revenue and over 50% of the year in the sales of the AI server in the first quarter. Foxconn expects his revenue to almost double consistently and year in the year in the current quarter.
Foxconn is a key manufacturer of NVIDIA, helping to manufacture its AI servers. However, the company has arranged its prospects from 2025 from “strong growth” to “significant growth”. Versace sees this change as “reflecting the shift of our tariffs and hanging trade deals between the US and Taiwan.”