Nvidia Stock Could Get Another Boost After U.S. Approves UAE AI Chip Deal

Core Insights - Nvidia has faced challenges in the Chinese market, which accounted for 13% of its sales in the 2025 fiscal year, following a freeze on selling high-powered chips in China [1] - The company received a boost when the U.S. granted an export license for Nvidia to ship AI GPUs worth tens of billions of dollars to the UAE [2] - The deal allows the UAE to purchase up to 500,000 advanced Nvidia processors annually, potentially generating $15 billion in annual revenue for Nvidia [3][6] Company Implications - The export license is a significant achievement for Nvidia, as it had anticipated this approval, and it helps clear previous government restrictions on foreign sales [5] - The expected revenue from the UAE deal is crucial for Nvidia to maintain its growth trajectory, with projected revenues between $180 billion and $200 billion for the current fiscal year [6] Industry Context - The UAE deal positions the U.S. in a growing AI market in the Middle East, where countries like Saudi Arabia and Qatar are also expanding their AI capabilities [7] - China's advancements in technology, including high-powered chips, pose a competitive threat to U.S. companies, as evidenced by Huawei surpassing Apple in smartphone supply [8]