Nvidia, AMD shares jump 6% on securing AI deals in Saudi Arabia; here’s how Indian semiconductor stocks react

In an overnight development, U.S. tech heavyweights Nvidia Corp. and Advanced Micro Devices Inc. rallied up to 6% after they announced deals with Saudi Arabian artificial intelligence company Humain to supply semiconductors for a massive data centre project. The chipmakers secured deals as part of a larger $600 billion investment package promised by Saudi Arabia to American AI companies during President Donald Trump tour of Gulf states.

Boosted by the development, NASDAQ-listed NVIDIA Corp shares surged 5.6% to settle at $129.93 per share. During the session, the chipmaker’s stock gained as much as 6.7% to $131.22, while its market capitalisation briefly surpassed Apple, the second-largest U.S. company. At the end of trade, Nvidia’s market cap stood at $3.17 trillion compared to Apple’s $3.18 trillion,

In a similar trend, Advanced Micro Devices (AMD) shares ended 4.01% higher at $112.46 apiece with a market cap of $182.34 billion, after hitting an intraday high of $113.13 on the NASDAQ.

Here’s how Indian semiconductor stocks react

Shares of semiconductor-related stocks saw positive trading on Wednesday, in sync with the benchmark indices–BSE Sensex and NSE Nifty, which rose over 0.5% in early trade. Dixon Technologies (India) , Vedanta , Tata Elxsi , and CG Power shares gained up to 3%. Among others, Surana Solar , RIR Power Electronics,  and SPEL Semiconductor shares were up in the range of 1-3%.

The sentiment was also lifted after Union Minister for Electronics & Information Technology Ashwini Vaishnaw inaugurated India’s First 3nm chip design centres in Noida and Bengaluru on Tuesday. He inaugurated two new design facilities of Renesas Electronics India, located in Noida and Bengaluru.

Highlighting the uniqueness of the new facility, Vaishnaw said that this is India’s first design centre to work on cutting-edge 3 nanometer chip design, a milestone that places India firmly in the global league of semiconductor innovation. “Designing at 3nm is truly next-generation. We’ve done 7nm and 5nm earlier, but this marks a new frontier,” he said.

Nvidia, AMD form strategic collaboration with Humain to advance global AI

As part of the deal, Nvidia will sell hundreds of thousands of AI chips in Saudi Arabia, with a first tranche of 18,000 of its newest Grace Blackwell AI supercomputer chips to Humain.

Humain, the new full AI value chain subsidiary of Saudi Arabia’s Public Investment Fund, is making a major investment to build AI factories in the Saudi Arabia with a projected capacity of up to 500 megawatts. This will be powered by several hundred thousand of Nvidia’s most advanced GPUs over the next five years. 

“These hyperscale AI data centres will provide a secure foundational infrastructure for training and deploying sovereign AI models at scale, enabling industries across Saudi Arabia and worldwide to accelerate innovation and digital transformation,” Nvidia said in a release.

In a separate release, AMD said that it has announced an agreement with Humain to build the world’s most open, scalable, resilient, and cost-efficient AI infrastructure. The two companies propose to invest up to $100 billion over five years to deploy 500 megawatts of AI hardware infrastructure. 

This will power the future of global intelligence through a network of AMD-based AI computing centers stretching from Saudi Arabia to the United States, the U.S. chipmaker said in a release.

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