Nvidia stock jumped over 3% early Wednesday after the company and fellow chipmakers announced billions of dollars worth of AI deals with Saudi Arabia.

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

“AI chips should not be bargaining chips for broader trade deals,” says Janet Egan, a senior fellow at the Center for a New American Security (CNAS). “They underpin US AI dominance, and we have to be really careful to not make short term decisions that might be beneficial for trade in the near term, but cede AI leadership in the longer term.”

On Wednesday, Nvidia joined Meta and Microsoft to become the third member of the Magnificent Seven to trade in the green year to date. It's a significant move because the chipmaker — as the word suggests — doesn't deal in intangible products that can slip through trade barriers.

The announcements follow reports that the US administration intends to facilitate AI chip deals between American firms and Gulf nations.

Nvidia's stock rose over 5 per cent, pushing its value past $3 trillion. New global deals and upcoming faster AI chips are boosting investor confidence, despite trade worries and fears of lower tech spending.

The Trump administration is preparing to announce a deal granting Saudi Arabia more access to advanced semiconductors, paving the way for increased data center capacity in the Gulf nation despite concerns from some US officials about its ties to China,