Trump's Middle East trip ignites a frenzy in U.S. tech stocks, with Tesla and NVIDIA emerging as big winners
Due to the easing of global trade tensions and Trump's visit to the Middle East, U.S. tech stocks performed strongly, with the Nasdaq Composite Index rising 7.15% for the week. Tesla and NVIDIA's stock prices increased by 17% and 16%, respectively. During Trump's visit to the Middle East, NVIDIA plans to sell 18,000 AI chips to Saudi Humain Company, and AMD will also supply chips. The White House announced the establishment of an AI park in collaboration with the UAE, leading to increased market optimism towards tech stocks
According to Zhitong Finance APP, due to the easing of global trade tensions and U.S. President Donald Trump's trip to the Middle East, U.S. tech stocks performed exceptionally well this week. The Nasdaq Composite Index saw a weekly increase of 7.15%. Tesla (TSLA.US) and NVIDIA (NVDA.US) saw their stock prices rise by 17% and 16% respectively this week.
Both China and the United States announced a 90-day delay in the implementation of tariffs, marking a significant de-escalation of the trade war that has unsettled global markets since April.
Trump's trip to the Middle East has shifted market focus to tech deals. During a delegation visit to the Middle East from the White House this week, NVIDIA CEO Jensen Huang revealed plans to sell over 18,000 AI Blackwell chips to Saudi Arabia's Humain company to support data centers.
AMD (AMD.US) also stated it would supply chips to Humain. The stock rose nearly 14% this week. Tech stocks like Palantir (PLTR.US) also saw weekly gains exceeding 10%.
Tesla CEO Elon Musk also visited Saudi Arabia, stating that the country has approved SpaceX's Starlink satellite internet service for aviation and maritime use. Musk also mentioned plans to introduce autonomous taxi services in the country.
The White House also announced that several U.S. companies will co-build a large-scale AI park with the UAE. Sources revealed that NVIDIA is one of the companies supporting the project.
Recently, the White House plans to lift the Biden administration's restrictions on chip exports to China and implement "simpler regulations," which has also fueled market optimism towards tech stocks.
China is a key market for NVIDIA. Jensen Huang has stated that the Chinese AI market could reach $50 billion in the next two to three years, and missing out would be a "huge loss."
