NVIDIA climbs toward 141 on Middle East news

NVIDIA shares continued their upward momentum from earlier in the week, gaining over 5% during Tuesday's trading session. The stock reached 130, moving above the 200-day moving average for the first time since late February. While technical indicators are showing signs of being overbought, the strong positive news is likely to delay any significant correction. Buyers may begin taking profits after the stock reaches 141.

The beginning of US President Trump's visit to the Middle East fueled the surge in demand for NVIDIA stock. Yesterday, Donald Trump arrived in Riyadh, where the Saudi-American investment forum commenced. At the event, NVIDIA CEO Jensen Huang announced a partnership with Humain, a local company that will build data centers for artificial intelligence (AI). NVIDIA will initially supply Humain with 18,000 of its latest GB300 chips, with the total deal potentially reaching several hundred thousand devices by 2030.

Following Saudi Arabia, Trump will visit Qatar and the UAE. According to Bloomberg sources, a significant expansion of quotas for the supply of advanced NVIDIA chips to the UAE may be announced during this visit. The deal is estimated to involve 0.5-1.5 million chips, four times the limit previously set by the Joe Biden administration. David Sacks, White House advisor on AI, is actively supporting the agreement.

Bloomberg experts believe the planned agreements with Middle Eastern countries represent a dramatic shift in US policy toward NVIDIA products. Previous US officials had restricted chip shipments to the region, fearing they could be acquired by Chinese companies. However, China has now begun producing its own hardware for AI development, making such restrictions increasingly untenable. This opens the door for NVIDIA to further expand its international business.

The RSI indicator suggests an increased probability of a pullback in NVIDIA's stock price. However, if the correction is limited to the 125 level, the stock is likely to quickly rebound to the 141 level.

Consider the following trading strategy:

Buy NVIDIA in the range of 125-130. Take profit – 141. Stop loss – 115.