Nvidia and AMD shares surged Thursday, May 15, propelled by blockbuster AI partnerships in the Middle East, AMD’s bold stock buyback plan, and a global pivot in AI chip demand away from China. These developments have reignited investor enthusiasm, signaling a robust growth trajectory for U.S. chipmakers after a challenging start to the year. The rally is sparked by Saudi Arabia’s plan to become a global AI hub, with Nvidia and AMD at the heart of it. According to Reuters and Barron’s, the two companies inked multi-billion-dollar deals with Humain, the AI division of Saudi Arabia’s Public Investment Fund (PIF).
What Saudi Arabia’s $10 billion AI push means for Nvidia and AMD
Over the next five years, Nvidia and AMD will supply millions of AI chips to power data centers with a combined capacity of 500 megawatts. These facilities, part of a $10 billion AI infrastructure investment spanning Saudi Arabia and the U.S., will drive advanced AI applications in healthcare, defense, finance, and smart city initiatives. The scale of the project is staggering. Each data center will house thousands of high-performance GPUs, enabling complex tasks like training large language models and real-time analytics. Investor’s Business Daily reports that these sovereign-backed projects could lock in steady, long-term demand for Nvidia and AMD, with analysts estimating a global market for such initiatives at $50 billion annually by 2030.
What investors are betting big on AMD’s $6 billion share buyback
Adding fuel to the rally, AMD unveiled a $6 billion stock buyback program, complementing its existing $4 billion authorization. This $10 billion total repurchase plan, as noted by Reuters, underscores AMD’s belief in its undervalued stock and strong financial outlook. By reducing shares in circulation, the buyback is designed to boost shareholder value and enhance earnings per share. The announcement drove AMD’s stock up 6.4% on May 14, with Nvidia also posting significant gains as investor confidence soared.
Can UAE help Nvidia and AMD get over China's DeepSeek troubles
The rally marks a sharp recovery from earlier setbacks. In the first quarter of 2025, Nvidia and AMD stocks plummeted when Chinese AI lab DeepSeek unveiled models rivaling U.S. capabilities at a lower cost. Nvidia lost 17% of its value in a single day, erasing $600 billion in market cap, while AMD faced similar pressure, according to Yahoo Finance and CBS News. The Middle East deals, combined with AMD’s buyback and diversifying markets, have shifted the narrative, restoring investor faith in the chipmakers’ resilience.
A pivotal factor in the stock surge is the shifting landscape of AI chip demand. The U.S. government’s reported approval of over 1 million Nvidia chip exports to the United Arab Emirates (UAE), per Investor’s Business Daily, highlights a growing reliance on Middle Eastern markets. This comes as U.S. chipmakers face tighter restrictions in China due to trade tensions and export controls. Middle Eastern nations, with their deep pockets and strategic AI ambitions, are stepping in as reliable, geopolitically stable customers. Saudi Arabia’s Vision 2030 and the UAE’s AI Strategy 2031 aim to position the region as a tech leader, creating a fertile ground for Nvidia and AMD’s growth.
Beyond supplying chips, Nvidia and AMD are deepening their Middle East presence through training programs and software ecosystems. Nvidia’s CUDA platform and AMD’s ROCm framework are being integrated into regional AI curricula, fostering local talent and ensuring long-term reliance on their technologies. Additionally, both companies are exploring edge AI solutions for smart cities, such as autonomous traffic systems and energy optimization, which could further diversify revenue streams.
What makes analysts term sovereign AI projects game changer
Analysts quoted by Barron’s see sovereign AI projects as a game-changer, potentially creating a $50 billion annual market by 2030. As nations like Saudi Arabia, the UAE, and others invest heavily in AI sovereignty, Nvidia and AMD are cementing their roles as indispensable partners. The stock surge on May 14 reflects investor bets on this global AI boom, with the Middle East emerging as a critical growth engine.
What Saudi Arabia’s $10 billion AI push means for Nvidia and AMD
Over the next five years, Nvidia and AMD will supply millions of AI chips to power data centers with a combined capacity of 500 megawatts. These facilities, part of a $10 billion AI infrastructure investment spanning Saudi Arabia and the U.S., will drive advanced AI applications in healthcare, defense, finance, and smart city initiatives. The scale of the project is staggering. Each data center will house thousands of high-performance GPUs, enabling complex tasks like training large language models and real-time analytics. Investor’s Business Daily reports that these sovereign-backed projects could lock in steady, long-term demand for Nvidia and AMD, with analysts estimating a global market for such initiatives at $50 billion annually by 2030.
What investors are betting big on AMD’s $6 billion share buyback
Adding fuel to the rally, AMD unveiled a $6 billion stock buyback program, complementing its existing $4 billion authorization. This $10 billion total repurchase plan, as noted by Reuters, underscores AMD’s belief in its undervalued stock and strong financial outlook. By reducing shares in circulation, the buyback is designed to boost shareholder value and enhance earnings per share. The announcement drove AMD’s stock up 6.4% on May 14, with Nvidia also posting significant gains as investor confidence soared.
Can UAE help Nvidia and AMD get over China's DeepSeek troubles
The rally marks a sharp recovery from earlier setbacks. In the first quarter of 2025, Nvidia and AMD stocks plummeted when Chinese AI lab DeepSeek unveiled models rivaling U.S. capabilities at a lower cost. Nvidia lost 17% of its value in a single day, erasing $600 billion in market cap, while AMD faced similar pressure, according to Yahoo Finance and CBS News. The Middle East deals, combined with AMD’s buyback and diversifying markets, have shifted the narrative, restoring investor faith in the chipmakers’ resilience.
A pivotal factor in the stock surge is the shifting landscape of AI chip demand. The U.S. government’s reported approval of over 1 million Nvidia chip exports to the United Arab Emirates (UAE), per Investor’s Business Daily, highlights a growing reliance on Middle Eastern markets. This comes as U.S. chipmakers face tighter restrictions in China due to trade tensions and export controls. Middle Eastern nations, with their deep pockets and strategic AI ambitions, are stepping in as reliable, geopolitically stable customers. Saudi Arabia’s Vision 2030 and the UAE’s AI Strategy 2031 aim to position the region as a tech leader, creating a fertile ground for Nvidia and AMD’s growth.
Beyond supplying chips, Nvidia and AMD are deepening their Middle East presence through training programs and software ecosystems. Nvidia’s CUDA platform and AMD’s ROCm framework are being integrated into regional AI curricula, fostering local talent and ensuring long-term reliance on their technologies. Additionally, both companies are exploring edge AI solutions for smart cities, such as autonomous traffic systems and energy optimization, which could further diversify revenue streams.
What makes analysts term sovereign AI projects game changer
Analysts quoted by Barron’s see sovereign AI projects as a game-changer, potentially creating a $50 billion annual market by 2030. As nations like Saudi Arabia, the UAE, and others invest heavily in AI sovereignty, Nvidia and AMD are cementing their roles as indispensable partners. The stock surge on May 14 reflects investor bets on this global AI boom, with the Middle East emerging as a critical growth engine.
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