In a landmark move for Nvidia (NVDA), the U.S. government has approved billions of dollars’ worth of the company’s AI chip exports to the United Arab Emirates (UAE), Bloomberg reported. The decision marks Nvidia’s first major export clearance to the Gulf nation under President Donald Trump’s administration, and a big step in expanding America’s AI reach overseas.
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The Commerce Department’s Bureau of Industry and Security granted Nvidia the export licenses as part of a U.S.–UAE artificial intelligence pact signed in May. The deal allows the Emirates to import up to 500,000 Nvidia chips a year starting in 2025, helping the country build large data centers that will support next-generation AI systems. In return, the UAE has pledged to invest up to $1.4 trillion in the U.S. over the next decade.
A Strategic Win for Nvidia
The approval is a big win for Nvidia, which already leads the global AI chip market. The deal opens a new source of revenue in the Middle East, where the UAE and Saudi Arabia are spending heavily to build their AI industries.
At the core of the plan is a massive data center in Abu Dhabi, with OpenAI (PC:OPAIQ) as a main partner. The project will play a key role in the region’s AI goals and strengthen Nvidia’s position as the top supplier of chips for large-scale AI systems.
Is NVDA Stock a Buy, Hold, or Sell?
On TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, two Holds, and one Sell rating. The average Nvidia price target of $213.61 implies 13.1% upside potential from current levels. Year-to-date, NVDA shares have surged nearly 41%.
As the U.S. approval for chip sales to the UAE strengthens Nvidia’s growth outlook, analysts could soon revise their price targets and earnings forecasts.
