NVIDIA Stocks: NVIDIA shares soar over 5% as valuations cross $3 trillion in Saudi Arabia trading, demand for AI chips rises
NVIDIA shares soared 5.7%, the biggest single force to boost the S&P 500.
NVIDIA CEO Jensen Huang announced a new partnership with Saudi Arabia company Humain, which will use Nvidia’s chips as a data center.
According to a Bloomberg report, the Trump administration can allow the UAE to buy more than one million Nvidia chips. These sales were earlier restricted by Biden’s rules on CHIP exports. This shows that more and more countries (not only China) are important to Nvidia’s business.
So what actually happened to Nvidia?
NVIDIA is a technology company that manufactures advanced computer chips. These chips are mainly used to perform tasks related to artificial intelligence (AI). NVIDIA has become very valuable since the beginning of 2023 as its market value grew by $2.5 trillion. But now, NVIDIA shares have fallen 22% from their peak value, mainly due to concerns over global trade tariffs initiated by U.S. President Donald Trump.
Worrying that the ensuing recession could result in Nvidia’s customers spending less money to buy chips. Even if computer chips are not taxed under old U.S. tariffs, investors are still worried.
However, large AI companies are still spending a lot on Nvidia’s bargaining chips. Nvidia’s latest chip, the H100 GPU, is the most popular in 2023. Nvidia owns 98% of the AI ​​chip market in 2023.
What’s new about NVIDIA’s chips?
The Blackwell and Blackwell Ultra series are coming soon. The latest chip is the Blackwell Ultra GB300 for the second half of 2025.
These new chips are 50 times faster than the H100. Very suitable for the next generation of AI, called the “inference model”. These models are smarter and cleaner, but take longer to think about. If the model is too slow, it may leave, so a faster chip is needed.
CEO Jensen Huang claims the new AI model will have 100 x more than the current model. Despite the current global trade tensions, an increasing number of hunger models can still develop chip sales for NVIDIA.
Some of NVIDIA’s high-value customer bases include names such as Meta (Facebook), Amazon, Microsoft, Google, etc. These technology powerhouses plan to squander nearly $320 billion on AI infrastructure and chips by 2025 alone. Meta even raised its spending plan to $6.4-720 million, from $6.00 million in the past.
NVIDIA will announce its financial results in the first quarter of fiscal year 2026 (February to April 20025). Investors are very interested in these results.
What can we expect in NVIDIA’s May 28 report?
NVIDIA’s expected revenue is about $43 billion, a 65% increase from last year. Earnings per share were expected to be about $0.89, 46% more than last year. 90% of the funding will come from data center chips used for AI work.
Investors will consider NVIDIA’s future forecast in the next quarter. They want to know, will customers still spend a lot of money on AI? Wall Street expects revenue to be $46.4 billion in the next quarter. If NVIDIA predicts less than this, the stock may drop. If NVIDIA makes a strong forecast, the stock may rise.
The current stock is cheaper than usual, with a price-to-earnings ratio of 40. Its average 10-year P/E ratio is 59.7. If NVIDIA reaches expected revenue of $4.41 per share in 2026, the stock could increase by 126% to match the average.
CEO Huang said that during the NVIDIA event in March, AI data centers will cost $1 trillion a year by 2028. NVIDIA may also provide the latest information on future chips called Rubin, which will be 3.3 times faster than the Blackwell Ultra. It is expected to be published in 2026.
NVIDIA’s May 28 report could worry investors, proving that customers are still spending on AI chips and announce new chips for the future. If all of this happens, NVIDIA shares could rise sharply. This may be a good time to invest before the stock rises again.
FAQ
Why has Nvidia’s stock risen recently?
NVIDIA shares rose due to strong global demand, new international trading and high expectations for its next-generation AI chips.
Will NVIDIA’s new Blackwell chips be faster than current chips?
Yes, the Blackwell Ultra chip is expected to be 50 times faster than NVIDIA’s current H100 chip.
