Since AI chips are back in favor with investors, NVIDIA and AMD have seen the biggest benefits. Collaborations with Humain in Saudi Arabia could perhaps help the companies with the losses experienced due to China restrictions.

These strategic agreements have changed the world semiconductor industry as the world is dealing with geopolitical issues and restrictions on exporting. 

Key-Takeaways:

• The demand for AI chips has increased, cooperations with Saudi firms help to balance out any losses from China and lead to changes in the semiconductor industry.
• Upbeat stock prices and huge chip deals are a sign that investors feel increasingly confident. They demonstrate their response to challenges worldwide and development in AI.

How NVIDIA and AMD Stock Have Performed in the Market

The announcement caused the NVIDIA stock to rise 4.2% on Wednesday. For the week, the stock went up more than 15% and surpassed its yearly losses, ending at $135.34 instead of its 2024 target of $134.29.

The company hit a market cap of over $3 trillion for the first time in over two months due to this rally. Investors are confident that NVIDIA is capable of facing international challenges.

On Wednesday, AMD shares went up by 4.7%, while for the week, they saw gains of 14%. The company followed six straight wins with an almost 19% gain and raised morale by outlining a program to repurchase $6 billion worth of shares.

NVIDIA and AMD have seen their shares rise because people think these deals will address concerns about their future prospects. NVIDIA is providing around 18,000 Blackwell chips to Humain for more than $700 million, underlining that top AI chips are still in high demand.

In addition, NVIDIA and Humain have made a five-year agreement to send Humain advanced GPUs on a massive scale. As a result, NVIDIA could make $3-5 billion every year in revenue.

At the same time, AMD partnered up with Humain for a $10 billion collaboration. As a result, AMD became a key figure in the development of AI infrastructure.

According to Rosenblatt, this could help AMD make up for the $1.5 billion impact caused by the China sanctions. It indicates that AMD is focusing more on opportunities in AI on a global scale.

How NVIDIA and AMD Adjust in Light of World Events

Linking forces with AMD and NVIDIA, Saudi Arabia’s Humain has launched an important new strategy. Both companies are making changes in their strategies due to tougher restrictions on exporting technology to China.

Earlier this year, NVIDIA predicted that up to $5.5 billion in charges could be incurred if they were forbidden to sell H20 chips to China. The firm’s analysts say earnings from Humain on 18,000 Blackwell chips could partly close the gap from losses due to the new restrictions.

Meanwhile, AMD is expecting a $1.5 billion fall in revenue because of the China ban. Having Humain as a partner will greatly benefit the company’s increase in activity.

This proves that NVIDIA and AMD are flexible in adapting their business plans. Areas where there is political and financial support for building important AI infrastructure are getting attention from these companies.

Saudi Arabia’s wish for global AI leadership is also reflected in the partnerships. Experts from Wedbush believe that Saudi Arabia’s AI plans could generate an extra $1 trillion in the global AI market, presenting great opportunities for the chipmakers.

Citi Research analysts are feeling somewhat positive about these deals. They view NVIDIA’s link with Humain as a step in the right direction but believe it is too early to say whether it can be repeated elsewhere.

Therefore, both NVIDIA and AMD must look for opportunities in different markets. It is still a concern that some countries could increase control over AI chips.

Analysis of Markets for Cryptocurrency and Decentralized Computing

The growth in data center revenue for NVIDIA and AMD affects the technology sector as well as stocks. It may have an effect on the cryptocurrency and decentralized computing industries.

NVIDIA is still the number one choice for GPUs used in AI and crypto mining. Yet, AMD almost doubling NVIDIA in data center revenue growth in Q1 of 2025, with 115% compared to 83%, indicates a new phase of competition. It could lead to issues with getting equipment and the prices being higher for those mining cryptocurrency.

Sentiment in the crypto market is strongly influenced by how NVIDIA and AMD do. It is obvious from the rise in prices of GPU tokens following the announcement of the Saudi partnership.

Render Token’s price went up by 7.3%, reaching $11.25 on May 6. The 24-hour trading volume went up by 42% to 18.5 million tokens.

In a similar pattern, the value of Akash Network (AKT) increased by 5.8% to reach $4.87. Traders are seeing a 29% rise in the number of tokens to 3.2 million, indicating they expect demand for GPUs in decentralized computations to keep growing.

You can clearly tell that the development of cryptocurrencies affects the prices of both NVIDIA and AMD stock. Trading at $63,450, Bitcoin made a 2.1% gain on May 6 because tech stocks were stronger.

Just behind, Ethereum went up by 1.9% to $3,120. This is in line with the surge in stocks that’s due to higher confidence in AI and tech.

These trends give traders the opportunity to take advantage of AI token growth. Using BTC and ETH as a hedge can be attractive as institutional money goes from investing in stocks to cryptocurrencies.

Conclusion

Both NVIDIA and AMD have continued to do well despite export problems, thanks to their Saudi partner deals. These arrangements might give U.S. companies in tech a framework for dealing with global hurdles while working on AI and computing advancements in the crypto market.