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Shares of Nvidia (NVDA) and other semiconductor stocks surged Tuesday amid optimism about new partnerships and trade deals.

Nvidia's stock jumped over 6% in recent trading, and Advanced Micro Devices (AMD) shares were up 4% after the companies said they would supply semiconductors to Saudi Arabian AI startup Humain, as part of initiatives announced as President Trump kicked off a four-day trip to the Middle East, starting in Saudi Arabia.

As part of Nvidia's partnership with Humain, which CEO Jensen Huang reportedly announced on stage at an event in Riyadh, the company said it will deploy "several hundred thousand" of Nvidia's most advanced GPUs over the next five years, starting with an 18,000 GB300 Grace Blackwell AI supercomputer with Nvidia's InfiniBand networking technology.

Meanwhile, AMD said it and Humain would invest up to $10 billion over the next five years to build out AI computing centers "stretching from the Kingdom of Saudi Arabia to the United States."

The announcements come as President Trump reportedly looks to secure $1 trillion in investment and trade pledges from Saudi Arabia, with plans to visit Qatar and the United Arab Emirates as well during his trip.

The White House didn't immediately respond to an Investopedia request for comment on the chip partnerships.

Shares of Broadcom (AVGO), Micron Technology (MU), and other chip stocks were also higher in recent trading, driving the PHLX Semiconductor Index (SOX) up about 3%, extended Monday's gains after the U.S. and China agreed to lower tariffs on each other's imports for 90 days.

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