Nvidia's stock has experienced a significant surge in May 2025, reflecting its strong position in the AI market. The company's market capitalization reached $3.29 trillion, making it the world's second-largest company. This growth is driven by increasing demand for AI chips and strategic partnerships.
Key Developments Driving Nvidia's Growth
Nvidia's partnership with Saudi Arabia's Humain involves supplying advanced GPUs for AI factories in the Kingdom. The initial phase includes deploying 18,000 NVIDIA GB300 Grace Blackwell AI supercomputers. This collaboration aims to establish Saudi Arabia as a leader in AI and digital transformation.
The U.S. and the United Arab Emirates (UAE) are nearing a deal to allow the UAE to import 500,000 of Nvidia's advanced AI chips annually, starting in 2025. This agreement would support the UAE's AI ambitions and data center infrastructure development. The deal may extend until 2030, with a portion of the chips allocated to the UAE's AI startup G42.
Market Performance and Future Outlook
The Nasdaq 100 has shown recovery, supported by tech stocks like Nvidia. Nvidia's stock performance and strategic AI partnerships are key factors in this resurgence. Analysts predict continued earnings growth for Nvidia, driven by the expanding AI market.