Nvidia gain leads chip stocks higher amid Saudi Arabia mega deal
May 13, 2025 11:16 AM ET
By: Chris Ciaccia, SA News Editor
Semiconductor stocks were largely higher on Tuesday after Nvidia (NASDAQ: NVDA) signed a partnership with Saudi Arabia to turn the Middle East country into a “global powerhouse in AI.”
Nvidia shares rose more than 6% after it said it will send chips to Saudi Arabian AI company Humain for a data center buildout that could have as much as 500 megawatts worth of power. The data center will be powered by hundreds of thousands of Nvidia's most advanced GPUs over the next five years. The first phase of deployment will be an 18,000 Nvidia GB300 Grace Blackwell AI supercomputer with Nvidia InfiniBand networking.
“Together with HUMAIN, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom,” said Nvidia's Founder and CEO Jensen Huang in a statement.
AMD ( AMD), which competes with Nvidia, rose more than 2% on the back of the Nvidia news. The company is also part of a tech consortium committed to investing $80B in the U.S. and Saudi Arabia, the White House said on Tuesday.
Intel shares rose more than 2% after Intel CFO David Zinsner told attendees at a J.P. Morgan investment conference that the company is still on track to break-even in its foundry business sometime in 2027. The company is aiming to compete with the likes of Samsung ( OTCPK:SSNLF) and Taiwan Semiconductor ( TSM) in the lucrative foundry market.
Silicon Laboratories ( SLAB) rose 1.5% after it reported better-than-expected results for the first-quarter and initiated a stronger-than-expected outlook for the coming quarter.
Other semiconductor stocks moved higher following the Nvidia news, including Broadcom ( AVGO), Micron ( MU), Qualcomm ( QCOM), Texas Instruments ( TXN), Analog Devices ( ADI) and ON Semiconductor ( ON). |
