Nvidia (NVDA) Stock: Trump’s Middle East Deal Gives Shares Another Boost
By: coin central|2025/05/16 19:30:09
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TLDRTrump announced a potential deal to allow UAE to buy advanced American AI chips, boosting Nvidia stock by 0.7%Nvidia shares have jumped 16% since US-China tariff reduction deal on MondayNvidia plans to open a new research center in Shanghai to maintain competitiveness despite export restrictionsThe Shanghai center will focus on Chinese customer needs while keeping chip design overseasNvidia aims to grow its $17 billion revenue from China to potentially $50 billion in the next few yearsNvidia stock climbed 0.7% to $135.77 in early trading Friday after President Donald Trump announced progress toward a new deal that would allow the United Arab Emirates to purchase advanced American-made AI chips.NVIDIA Corporation (NVDA)This marks another positive development for the chip giant this week. Shares have already surged 16% since Monday when the US and China agreed to reduce tariffs for 90 days.The company’s valuation recently crossed back above the $3 trillion mark following news of an agreement to sell AI chips to Saudi Arabia.Other semiconductor stocks also rose in Friday trading. Advanced Micro Devices gained 1.8%, while Broadcom, Qualcomm, and Intel saw more modest increases.China Strategy Takes ShapeWhile expanding in the Middle East, Nvidia is also reinforcing its position in China despite export restrictions and tariffs imposed by the US government.The company plans to open a new research center in Shanghai. This facility will focus on understanding the specific needs of Chinese customers and navigating the “complex technical requirements” needed to comply with White House restrictions.Importantly, the actual design and production of Nvidia’s chips will remain outside China. This approach helps avoid complications regarding intellectual property transfers.The Shanghai center will also work on optimizing existing products and research in sectors like autonomous driving.Nvidia hopes to recruit top Chinese AI talent for the center, potentially creating challenges for local competitors.Growth AmbitionsChina represented 14% of Nvidia’s revenue last year, translating to approximately $17 billion in sales.CEO Jensen Huang has expressed confidence that this figure could reach $50 billion within just a couple of years.The Shanghai government has reportedly shown preliminary support for the research center plan.Nvidia has also been lobbying the Trump administration for approval of its China strategy.During his recent Saudi Arabia trip, President Trump praised Huang, stating: “What a job you’ve done. He’s got 99% of the chip market. That’s not easy to beat.”The company enjoys strong analyst support. According to TipRanks, Nvidia holds a Strong Buy consensus rating based on 34 Buy recommendations, compared to just 5 Hold and 1 Sell rating.Source: TipRanksThe highest price target for NVDA stock stands at $200, while the consensus target of $164.51 suggests a potential 22.01% upside from current levels.This latest UAE deal adds to Nvidia’s growing presence in the Middle East tech market, following its recent agreement with Saudi Arabia.Trade tensions with China had previously raised concerns about Nvidia’s growth in Asian markets.However, the combination of easing US-China trade relations and the company’s strategic moves in both China and the Middle East appear to be easing those worries.Nvidia continues to cement its position as the dominant player in AI chips globally.The company’s stock has rebounded strongly from earlier declines, with this week’s gains helping to restore investor confidence.Friday’s announcement about the UAE deal further reinforces the company’s expanding global footprint in AI chip distribution.The post Nvidia (NVDA) Stock: Trump’s Middle East Deal Gives Shares Another Boost appeared first on CoinCentral.
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