NVIDIA AMD stock surge: NVIDIA and AMD stock jumps, leaving behind the impact of DeepSeek; here’s what happened and what investors should know

NVIDIA and AMD stocks surge investor confidence after trading in Middle East Majors – NVIDIA and AMD stocks held a strong rally on May 14, 2025, with investors actively responding to new developments in the global AI landscape. These gains are driven by fresh billion-dollar partnerships in the Middle East, with AMD’s major stock buyback programs and rising demand for AI chips outside China. Together, these factors mark a long-term growth path for U.S. chipmakers, which have been under pressure earlier this year.

According to Reuters, NVIDIA and AMD have now become part of Saudi Arabia’s strategic push to become a major hub for artificial intelligence development. The news sent AMD stock up 6.4%, while NVIDIA also showed reliable returns as investors showed renewed confidence.

How will NVIDIA and AMD participate in Saudi Arabia’s $10 billion AI infrastructure program?

One of the biggest drivers of the stock surge was a strategic deal with Humain, the artificial intelligence arm of the Saudi Arabian Public Investment Fund (PIF). NVIDIA and AMD will provide hundreds of thousands of AI chips over the next five years to help power large data centers in the region.
The planned data center will support up to 500 megawatts of computing power, partly provided by a $10 billion AI investment in Saudi Arabia and the United States. These centers are expected to handle complex AI workloads, from model training to real-time applications in areas such as healthcare, defense and finance.

Barron and Investor’s Business Daily first reported on the partnership, confirming that chipmakers are now aligned with sovereign-backed AI growth projects, which could be a stable source of demand.

What does AMD mean for investors’ $6 billion stock buyback?

In addition to the Middle East deal, AMD has announced a new $6 billion stock buyback program, which adds its existing $4 billion buyback mandate. This will bring the total repurchase right authorization to $10 billion. According to Reuters and Barron’s, the move reflects AMD’s confidence in financial health and future growth. By buying back its own shares, AMD’s goal is to return value to shareholders and reduce the number of shares in circulation, which is usually a signal that the company regards its shares as undervalued. The buyback helped fuel AMD’s 6.4% stock increase on May 14, strengthening the market’s idea that it is a sign of strength and a long-term plan.

Is the demand for bargaining chips transferred from China to the Middle East?

Another key factor driving the rally is the increasing change in global demand for AI chips. The U.S. government is reportedly considering allowing the United Arab Emirates to import more than 1 million Nvidia chips, a development that highlights how geopolitical priorities are moved away from China.

Previously, American chip manufacturers like NVIDIA relied heavily on Chinese customers. However, trade restrictions and tensions have made the market less reliable. Now, as Middle Eastern countries increase investment in AI infrastructure, companies such as Nvidia and AMD are seeing new demand in safer areas of Earth’s ports.

This trend, reported by investors’ daily business, points to a strategic diversification that can help reduce exposure to international risks.

How did DeepSeek’s early competition affect these chip stocks?

It is important to remember that earlier this year, Nvidia and AMD were both popular, with reports that China’s AI Lab DeepSeek developed models that match or exceed U.S. capabilities, which is a fraction of the cost.

The news triggered a sharp sell-off. NVIDIA shares fell 17% in one day, consuming about $600 billion in market value, according to Yahoo Finance and CBS News. AMD also felt pressured as concerns about global competition grew.

Now, the recent rebound marks a potential recession. New deals, expanded markets, and corporate strategies such as buybacks are reshaping investors’ expectations.

Can sovereign AI projects become long-term growth engines?

Sovereign-backed AI projects such as the Saudi Arabia’s Humain initiative could represent $50 billion globally in the coming years, according to analysts cited by Barron’s. This suggests that the current trading may be just the beginning of a long-term opportunity.

As more countries build national AI capabilities, companies such as Nvidia and AMD position themselves as major suppliers. Their chips are critical to training large AI models, managing large datasets, and running next-generation applications in real time.

The recent surge in stocks suggests investors are paying attention to the shift and betting on the continued expansion of AI infrastructure worldwide.

FAQ:

Question 1: Why are NVIDIA and AMD stocks suddenly rising?
They made a profit after announcing a large AI chip deal with Saudi Arabia and AMD’s $6 billion buyback program.

Question 2: What is Humain’s role in the AI ​​chip market?
With the support of Saudi Arabia’s PIF, Humain is building a large AI data center powered by Nvidia and AMD chips.