US Approves NVDA Chip Exports to UAE

NVIDIA Corporation (NASDAQ:NVDA) is one of the 11 Best American Semiconductor Stocks to Invest In. On October 8, Bloomberg News reported that the US has approved the export of several billion dollars’ worth of NVIDIA Corporation (NASDAQ:NVDA) chips to the United Arab Emirates (UAE).

This approval supports a positive outlook for NVIDIA Corporation (NASDAQ:NVDA). The deal will support the construction of data centers in the UAE, which are important for developing AI models.

While citing people familiar with the matter, the report said that the Commerce Department’s Bureau of Industry and Security granted export licenses to NVIDIA Corporation (NASDAQ:NVDA) after the UAE made solid plans to make a reciprocal amount of investment in the US. These licenses are part of a bilateral AI agreement made in May.

Reuters reported in May that the US and the UAE have a preliminary agreement that allows the UAE to import 500,000 of NVIDIA Corporation’s (NASDAQ:NVDA) most advanced AI chips per year, starting in 2025. This agreement lasts at least until 2027 and there is a chance it could extend until 2030.

NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that manufactures graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Best American Tech Stocks to Buy Right Now and 10 Most Profitable Stocks of the Last 5 Years.

Disclosure: None. This article is originally published at Insider Monkey.