Nvidia and Tesla surged this week, fueled by Trump’s visit to the Middle East.
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(COMBO) This combination of pictures created on January 31, 2025 shows (L) Nvidia CEO Jensen Huang in Las Vegas, Nevada on January 6, 2025, and US President Donald Trump in the Oval Office of the White House in Washington, DC on January 31, 2025. Jensen Huang, CEO of AI chip giant Nvidia, met January 31, 2025, with President Donald Trump as the company faced challenges on Wall Street related to competition with China and potential tariffs on semiconductors.
It's been a stellar week for technology stocks thanks to easing global tensions and President Donald Trump's Middle East engagements. Tesla and Nvidia experienced significant gains, jumping 17% and 16%, respectively, as tensions between the U.S. and China relaxed, drawing attention to tech deals during Trump's Middle East tour.
Both China and the U.S. announced a 90-day pause on tariffs, marking a significant de-escalation in the global trade conflict that has unsettled markets since April. During a White House-led visit to the Middle East this week, Nvidia CEO Jensen Huang discussed plans to supply over 18,000 of its artificial intelligence Blackwell chips to Saudi Arabia-based Humain for data centers.
AMD also announced it would provide chips to Humain, contributing to a nearly 14% rise in stock for the week. Palantir and Taiwan Semiconductor Manufacturing were among other tech stocks that surged more than 10%. Tesla CEO Elon Musk, also present in Saudi Arabia, mentioned that the kingdom approved SpaceX's Starlink satellite internet service for aviation and maritime applications, and he expressed plans to introduce robotaxis to the region.
In the United Arab Emirates, the White House unveiled a partnership aimed at developing a substantial AI campus in collaboration with several U.S. companies, with Nvidia reported to be among the contributors to this initiative. Recent plans from the White House to ease chip export restrictions on China, through President Joe Biden's administration, have also positively impacted the sector.
Similar to many competitors, Nvidia requires a license to export its AI chips to China after the U.S. enacted restrictions in 2022 due to national security issues. Last month, Nvidia indicated it would incur a $5.5 billion charge related to H20 GPU shipments to China, a crucial market for the U.S.-based chipmaker. Huang noted that China's AI market is projected to reach $50 billion within the next two to three years, emphasizing that missing out would represent a "tremendous loss."
