Nvidia (NVDA) extended its winning streak on Friday after President Donald Trump announced a new deal to ship U.S.-made AI chips to the Middle East. The news pushed Nvidia shares up another 0.7% to $135.77 in early trading, on top of a 16% rally already notched this week.
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Trump Greenlights UAE AI Chip Agreement
Speaking Friday, Trump revealed that the U.S. and United Arab Emirates had agreed on a framework to enable Abu Dhabi to purchase advanced American AI chips. That marks the second major AI chip export deal this week, following Monday’s headline-grabbing pact with Saudi Arabia. In both cases, the chips are expected to come from U.S. giants like Nvidia and potentially others such as AMD or Intel.
The UAE deal appears to follow the same path as the Saudi one—greenlighting American chip exports to allies while still restricting Chinese access. That geopolitical balancing act has lifted market sentiment and driven investor enthusiasm back into the semiconductor sector.
Nvidia Shares Cross $3 Trillion Market Cap Again
After wobbling earlier this quarter, Nvidia’s valuation has surged back over $3 trillion thanks to booming demand for its AI chips. Trade diplomacy has only added fuel to the fire. Since Monday’s U.S.-China tariff de-escalation, Nvidia stock has jumped 16%. Analysts say the latest round of AI export approvals could help solidify Nvidia’s dominance as the go-to chip supplier for governments and tech firms alike.
Chip Rivals Rally Alongside Nvidia
Nvidia wasn’t alone in the Friday glow. AMD (AMD) rose 1.8%, Broadcom (AVGO) inched up 0.2%, and Qualcomm (QCOM) climbed 0.3%, while Intel added 0.5%. The broader S&P 500 futures were also up 0.3% ahead of the market open.
Is Nvidia Stock a Good Buy?
Despite already racing past a $3 trillion valuation, Nvidia still has analysts pounding the table. According to TipRanks, Wall Street has slapped the stock with a Strong Buy consensus from 40 analysts in the past three months. That includes 34 Buy ratings, five Holds, and just a single Sell.
The average 12-month NVDA price target sits at $164.51, which implies a 20.95% upside from its last close at $136.02. The highest forecast comes in hot at $200, while the most bearish target lands at $100.
Even after a monster week, the Street clearly isn’t calling the top just yet.
