Nvidia jumps back above $3 trillion valuation after announcing chip deal with Saudi Arabia
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2025-05-13T17:28:15Z
- Nvidia surged after announcing a partnership with a Saudi Arabia tech firm.
- The stock’s intraday high pushed Nvidia’s market cap past $3 trillion for the first time since February.
- Nvidia will provide Saudi Arabia with advanced chips for an AI buildout.
The move: Nvidia stock jumped as much as 6.4% to hit an intraday high of $130.99 per share on Monday, The rally pushed to stock to a market cap of $3.16 trillion, the highest valuation for the chip titan since February.
Shares are down 2.5% year-to-date.
Why: The tech giant is surging after the company announced a strategic partnership with Humain, an AI firm that’s a subsidiary of Saudi Arabia’s Public Investment Fund.
Nvidia will provide Humain with its most advanced semiconductors to power AI factories throughout the kingdom. The first phase of the 500 megawatt buildout will deploy 18,000 GB300 Grace Blackwell chips, according to a press release.
The news follows on the heels of a separate partnership announced on Tuesday between the US and Saudi Arabia, which will see Riyadh invest $600 billion in America’s AI and energy infrastructure, among other things.
What it means: Tuesday’s rally has pushed Nvidia back into the $3 trillion market capitalization club after the stock tumbled early in 2025 amid a broader sell-off sparked by tariff uncertainty. The company first crossed the threshold last summer, joining an exclusive club that counts only Apple and Microsoft as its other members.
With shares surging, the tech-heavy Nasdaq Composite jumped 2% on Tuesday, surpassing a 1% gain in the S&P 500.