Two Key Developments Sparked a Rally for Nvidia Stock on Tuesday

Shares of Nvidia (NASDAQ: NVDA) were off to the races on Tuesday, climbing as much as 6.4%. As of 11:35 a.m. ET, the stock was still up 5.6%.

The catalyst that sent the artificial intelligence (AI) chipmaker higher was news that the company could gain greater access to two important markets.

Image source: Nvidia.

Chips ahoy

A story broke late Monday that the Trump administration was considering a deal that would involve a large-scale sale of AI-centric chips to G42, a company located in the United Arab Emirates, according to a report in The New York Times. The deal could send hundreds of thousands of graphics processing units (GPUs) to the Emirati AI specialist and its U.S. partner, OpenAI.

Then, less than 24 hours later, Nvidia announced a strategic partnership with Saudi Arabian company Humain to sell more than 18,000 AI-centric chips. These state-of-the-art GB300 Blackwell chips will power a 500-megawatt data center in the Middle Eastern country.

These reports come on the heels of the Trump administration's decision to rescind the so-called AI Diffusion Rule, which would have limited the sale of Nvidia's most advanced processors in the region.

The start of something big?

Investors have been concerned that stricter controls on the sale of GPUs to companies outside the U.S. would hamstring Nvidia, casting doubt on the company's potential for future growth. The willingness of the Trump administration to revise these rules seems like it is opening up new opportunities for Nvidia.

And at just 29 times next year's expected earnings, Nvidia stock is attractively priced.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $318,970!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,016!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $598,613!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of May 12, 2025

Danny Vena has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.