Nvidia Stock Spikes To Record High On UAE Trade Approval

Nvidia NVDA stock rose to a record high on Thursday after the US government granted the company final permission to export multi-billion-dollar artificial intelligence chips to the United Arab Emirates.

Bloomberg reported that the Commerce Department’s Bureau of Industry and Security recently issued export licenses under the bilateral trade agreement reached in May. As part of the agreement, the UAE agreed to invest $1.4 trillion in the United States over the next decade.

On the stock market today, Nvidia stock rose 1.8% to close at 192.57. Earlier in the session, it reached an all-time high of 195.30.

On September 30, Nvidia stock broke out of a flat base at a buy point of 184.48, according to IBD MarketSurge charts.

Also Thursday, Nvidia stock scored a high Street price target from a Wall Street analyst as momentum to build AI data centers continues.

Cantor Fitzgerald analyst CJ Muse reiterated his overweight or buy rating on Nvidia stock and raised his price target to 300 from 240.

“We are still in the early stages of building a multi-trillion-dollar AI infrastructure,” Muse said in a client note.

Nvidia stock is on four IBD lists

In addition to large-scale cloud providers investing in AI, other market drivers include AI startups known as neoclouds, enterprise adoption of AI and the emergence of physical AI in the form of self-driving vehicles and robots, he said.

“Therefore, this is not a bubble, and we are still in the early stages of this investment cycle,” Muse said.

He said that the IT industry is shifting from traditional computing to accelerated artificial intelligence computing.

“In the last 12 months, recommenders have adopted generative AI. Research has moved to generative AI. Social media has moved to generative AI. User-generated content, ad recommendation, everything has moved from classic machine learning to generative AI,” Muse said. “Nvidia expects to spend $2 trillion here from traditional computing to generative AI alone.”

Nvidia stock is on four IBD lists: Big Cap 20, Sector Leaders, Stock Spotlight, and Tech Leaders.

Follow Patrick Seitz on X at IBD_PSeitz for more stories on consumer technology, software, and semiconductor stocks.

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