The U.S. has approved the export of Nvidia chips to the UAE following a bilateral AI agreement signed in May, marking a significant step in deepening U.S.-UAE cooperation in artificial intelligence technology.

The partnership underscores a strategic alignment between Washington and Abu Dhabi, with U.S. firms viewing the Gulf as a promising market for high-growth technology investments.

Nvidia's comprehensive ecosystem and full-stack AI solutions give it a competitive edge over rivals like AMD, with high-profile firms raising target prices up to $275, citing robust demand from hyperscalers and enterprise clients.

This move occurs amid global geopolitical tensions, emphasizing AI technology as a strategic asset for national security and economic leadership.

The White House emphasizes that these agreements are designed to protect U.S. security interests, maintain technological dominance, and extend American tech influence to key allies.

Analysts project Nvidia's stock could reach $200-$215 in the next four to six weeks if current momentum persists, with potential for a surge to $220-$230 if large deals or strong Q4 AI demand materialize.

The export deal has faced delays and internal disagreements within the U.S. government due to national security concerns and tensions between Nvidia's CEO Jensen Huang and White House officials.

The deal involves significant financial investments and technological exchanges focused on advanced AI hardware and software.

This development includes the launch of Stargate UAE, the world's largest AI data center, in collaboration with G42, OpenAI, Oracle, and SoftBank, which is expected to become operational in 2026 to support low-latency AI inference and nation-scale computing.

Momentum indicators like RSI and MACD are neutral to positive, with elevated trading volume supporting Nvidia's rally and indicating strong institutional interest.

Year-to-date, Nvidia shares have surged nearly 41%, reflecting investor confidence and growth prospects driven by this strategic deal.

Nvidia's involvement includes creating a joint AI and robotics lab in Abu Dhabi and supplying advanced AI systems like the Grace Blackwell GB300 to foster innovation.