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President Donald Trump (centre left) and Saudi Crown Prince Mohammed bin Salman (centre right) pose for a photo with business leaders including Nvidia CEO Jensen Huang in Riyadh, Saudi Arabia on May 13, 2025Key Takeaways
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Nvidia and other AI stocks climbed Wednesday, extending gains following new partnerships announced in Saudi Arabia.
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AMD, Supermicro, Palantir, and Tesla shares were among those that gained Wednesday.
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Wedbush analysts said they expect bigger AI deals to come.
Nvidia (NVDA) and other AI stocks climbed Wednesday, extending Tuesday's gains as Saudi Arabian partnerships announced during President Donald Trump's four-day trip to the Middle East stoked excitement for future deals.
Wedbush analysts said the deals announced Tuesday, which will see Nvidia and Advanced Micro Devices (AMD) supply semiconductors to Saudi AI startup Humain, is “just the beginning” for AI-driven partnerships in the Middle East. “We expect bigger AI deals on the horizon,” potentially involving companies such as Palantir (PLTR) or Tesla (TSLA), the analysts said.
The Saudi AI investment could also help offset the impact of restrictions on sales of AI chips to China, Bank of America analysts said. Nvidia warned last month it could take a $5.5 billion charge related to limits on exports of its H20 chip, while AMD warned it would face an $800 million hit.
Nvidia shares were up close to 4% in recent trading, while AMD added more than 5%. Shares of Super Micro Computer (SMCI), an AI server maker partnered with both companies, rocketed higher for the second day in a row after announcing its own Saudi deal. Meanwhile, Palantir ticked up 1% a day after hitting a record high, and Tesla gained 3%.
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