Nvidia stock jumped over 3% early Wednesday after the company and fellow chipmakers announced billions of dollars worth of AI deals with Saudi Arabia.

NVIDIA and the Saudi Data & AI Authority (SDAIA) will deploy up to 5,000 Blackwell GPUs for a sovereign AI factory and enable smart city solutions. NVIDIA and SDAIA will train government and university scientists and engineers on how to develop and deploy models for physical and agentic AI.

As Nvidia CEO Jensen Huang was in Saudi Arabia announcing the Blackwell deal, the Trump administration released a new round of AI chip restrictions targeting China. The Commerce Department issued a warning against the use of U.S. AI chips for Chinese models and singled out "diversion tactics" and securing supply chains to target smuggling.

In a geopolitical chess game with billions at stake, Saudi Arabia, the U.S. and Nvidia all have something to gain.

Saudi Arabia’s Crown Prince Mohammed Bin Salman launched Humain to develop and manage artificial intelligence technologies.

Nvidia CEO Jensen Huang said the cutting-edge Blackwell chips will be used in a 500 megawatt data center in Saudi Arabia.

Super Micro Computer shares are following up Tuesday's 16% surge with another 8% gain as news of [big AI investments by Saudi Arabia](

Nvidia's stock targets $150 as Saudi Arabia partners with Nvidia, AMD, and Amazon to build a global AI hub. Analysts see this as a key growth catalyst for NVDA.