TLDR
- Nvidia soars as U.S. approves billion-dollar AI chip deal with UAE.
- U.S.–UAE AI pact fuels Nvidia surge with major export license approval.
- Nvidia gains on U.S. greenlight for UAE’s massive AI chip import plan.
- Nvidia climbs after securing key AI chip export deal with the UAE.
- Nvidia stock jumps on U.S.-backed AI chip partnership with Gulf ally.
Nvidia Corporation (NVDA) gained momentum as shares closed at $189.11 on October 8, climbing 2.20% for the day. Pre-market activity pushed the price even higher to $190.47 by 5:11 AM EDT, reflecting growing optimism.
This surge followed U.S. approval of a major Nvidia chip export deal with the United Arab Emirates (UAE), sparking broad market interest.
Massive AI Chip Deal with UAE Approved
The U.S. Commerce Department granted Nvidia dollars worth of export licenses for chip sales to the UAE. These approvals came under a bilateral artificial intelligence agreement finalized between the two countries earlier in May. This deal forms part of a broader U.S. effort to expand high-tech cooperation with strategic Gulf partners.
The licenses will enable the UAE to import around 500,000 advanced Nvidia AI chips annually, starting in 2025. The agreement, initially expected to last through 2027, could extend to 2030, depending on performance. In return, the UAE has committed to equivalent-scale investments in American technology ventures.
These chips will power large-scale data centers designed to build and train advanced AI systems across sectors. The UAE plans to use this infrastructure to become a major hub for emerging technology. U.S. authorities approved the deal after the Emirates submitted detailed investment and security guarantees.
Political Backing and Broader Gulf Tech Push
The Biden administration has emphasized AI cooperation with Gulf allies as a central element of its foreign tech policy. Officials consider the deal with the UAE a milestone in balancing national security with global tech leadership. The Commerce Department confirmed full support for the agreement, indicating ongoing oversight and engagement.
U.S. approval comes as the UAE ramps up AI infrastructure ambitions with global partners, including top American chipmakers. The partnership reflects a strategic alignment between Washington and Abu Dhabi on next-generation technology goals. U.S. firms see the Gulf as a high-growth market with long-term potential.
President Trump previously advanced ties with Gulf states, including Saudi Arabia and the UAE, through massive tech and defense deals. During a tour of the region in May, Trump announced commitments totaling $600 billion with Saudi Arabia alone. These included purchases of chips from Nvidia, AMD, and Qualcomm to support regional tech expansion.
