Nvidia Stock Could Get Another Boost After U.S. Approves UAE AI Chip Deal

The deal, if successful, could serve as a model for future agreements. It's only been a few weeks since China froze Nvidia (NASDAQ: NVDA) from selling its high-powered chips in the Chinese market. China has been an important market for Nvidia, accounting for 13% of its sales in the company's 2025 fiscal year, so the loss was troubling for Nvidia shareholders. However, the stock got a boost on Thursday when Bloomberg reported that the U.S. has now granted an export license for Nvidia to ship tens of billions of dollars worth of its top artificial intelligence (AI) graphics processing units (GPUs) to the United Arab Emirates. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks " The authorization stems from a May trade agreement that permits the UAE to buy up to 500,000 advanced Nvidia processors each year in exchange for committing to $1.4 trillion of investment in the U.S. over the next decade. Bloomberg reports that the AI accelerators being shipped to the UAE will be earmarked for American companies that have data centers in the UAE, rather than being used by G42, an Abu Dhabi-based AI company. These are chips that Nvidia already planned to sell -- the company and investors had anticipated the U.S. would issue the license. But clearing government red tape is always an important accomplishment, especially since some of the company's foreign sales were blocked in the past. However, the impact of the sales is indisputable. Blackwell chips reportedly cost roughly $30,000 each, so selling 500,000 annually would mean $15 billion in annual revenue for Nvidia. That's significant, even for this company, which is expecting between $180 billion and $200 billion in revenue for the current fiscal year. There's a bigger picture here, as well. As Bloomberg reports, the UAE deal allows the U.S. to have a foothold in the lucrative Middle East, where AI is expanding rapidly in the UAE, Saudi Arabia, and Qatar. China's manufacturing is increasingly becoming a competitor with U.S. companies. Huawei topped Apple's position as the leading smartphone supplier, and Beijing's willingness to freeze Nvidia from China indicates the government is increasingly confident in its ability to develop its own technology infrastructure, including high-powered chips to run AI applications. Washington's deal with the UAE is meant to give American companies an opportunity to compete in the Middle East, rather than ceding the region to China. The newly awarded export license, if successful, could serve to be a model for future deals. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $654,835!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,159,218!* Now, it's worth noting Stock Advisor's total average return is 1,081% -- a market-crushing outperformance compared to 192% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.

Nvidia Stock Could Get Another Boost After U.S. Approves UAE AI Chip Deal

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