Overview

• On October 8, Bloomberg reported that the Commerce Department’s Bureau of Industry and Security granted NVIDIA export licenses enabling several billion dollars in AI chip shipments to the United Arab Emirates.
• People familiar with the matter said the approvals were tied to reciprocal UAE investment in the United States as part of the May AI agreement.
• Reuters previously reported a framework that would allow the UAE to import up to 500,000 of NVIDIA’s most advanced chips annually starting in 2025, with the arrangement running at least through 2027 and possibly to 2030.
• The reported licensing supports construction of UAE data centers intended to train and deploy AI models.
• Following the licensing news, Morgan Stanley reiterated an Overweight rating on October 10 citing durable demand and rising cloud share, while Forbes highlighted NVIDIA’s strong fundamentals and roughly 30% year-to-date stock gain.