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Nvidia (NASDAQ:NVDA) shot up 5.5% today after sealing a deal to outfit Saudi Arabia's Humain AI data center with up to 500 MW of its GPUsyes, half a gigawatt of crunch power. You've got to admire the scale: phase one alone is an 18,000-unit GB300 Grace Blackwell supercomputer hooked up over InfiniBand.
CEO Jensen Huang says they're building AI infrastructure for the people and companies of Saudi Arabia, and honestly, who wouldn't want to be part of that?
The buzz spread fast. AMD (NASDAQ:AMD) popped 2% just on the Nvidia headline, and Intel (INTC) climbed 2% after its CFO reminded everyone they're still gunning for a 2027 foundry break-even.
Even Samsung's chip arm (SSNLF) and Taiwan Semiconductor (NYSE:TSM) got a lift. And it wasn't just the big dogsSilicon Labs (NASDAQ:SLAB) jumped 1.5% after a standout Q1, while Broadcom (NASDAQ:AVGO), Micron (NASDAQ:MU), Qualcomm (NASDAQ:QCOM), Texas Instruments (NASDAQ:TXN), Analog Devices (NASDAQ:ADI) and ON Semiconductor (NASDAQ:ON) all crept higher.
Why does it matter? Well, landing a mega contract in the Middle East doesn't just pad Nvidia's order bookit turns up the heat on everyone else and shows how geopolitics is reshaping the semiconductor world.
Keep an eye on the next earnings from AMD, INTC and AVGO. If they can ride this AI wave, we might be in for a broader chip rally.
This article first appeared on GuruFocus.