UAE Seeks US Approval for More Nvidia AI Chips Purchase
The United Arab Emirates’ (UAE) national security advisor, Sheikh Tahnoon bin Zayed Al Nahyan, is heading to the U.S. to discuss purchasing more AI chips from companies like chipmaker Nvidia (NVDA), according to Bloomberg. This visit is significant because it comes at the request of the Trump administration, which is considering revising the export control curbs imposed by the Biden administration in August 2023.
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The UAE is aggressively trying to achieve its goal of becoming a regional AI hub by investing billions in AI-focused data centers, and Nvidia’s advanced chips are crucial for powering these data centers. However, the sale of Nvidia’s advanced chips to the UAE has been restricted by U.S. export control laws. As a result, the UAE is hoping to persuade the U.S. government to relax these restrictions and allow the purchase of more Nvidia AI accelerators.
It is worth noting that Nvidia already has ties to the UAE, as it partnered with UAE-based AI company G42 to improve climate technology and weather forecasting using AI. The company has also collaborated with the UAE on other AI initiatives. As the UAE continues to invest heavily in AI, Nvidia’s technology is likely to play a key role in the country’s ambitions. Therefore, the outcome of the UAE’s negotiations with the U.S. government will likely be closely watched by Nvidia and the broader tech industry.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 39 Buys and three Holds assigned in the past three months. Furthermore, the average NVDA price target of $177.41 per share implies an upside potential of 52.41% from current levels.
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UAE Seeks US Approval for More Nvidia AI Chips Purchase, source
