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Nvidia (NVDA, Financials) may gain from regulatory changes as the U.S. considers easing AI chip export restrictions to the United Arab Emirates, Bloomberg reported. The review comes ahead of President Donald Trump's May 1316 visit to the Gulf, overlapping with the AI diffusion rule's effective date.
The UAE plans to invest $1.4 trillion over the next decade in U.S. energy, semiconductor, and AI sectors, according to Bloomberg. The effort includes a $1.5 billion Microsoft-G42 partnership and a Mubadala-backed stake in Intel's Altera business.
Trump has questioned why a country cleared to buy F-35s faces chip restrictions. Nvidia CEO Jensen Huang urged regulatory changes in Washington, warning that stringent export curbs could drive allies toward Chinese alternatives. Microsoft has similarly advocated for easing rules for American friends, according to the outlet.
Bloomberg noted that Trump officials may abandon the tiered diffusion rule in favor of global licensing, potentially allowing country-specific chip agreements. That shift could open up growth channels for Nvidia and peers amid intensifying global AI competition.
Investors should watch for policy signals during Trump's UAE visit, as regulatory shifts may reshape Nvidia's global AI strategy.
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This article first appeared on GuruFocus.