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Nvidia Stock Soars Amid US-Saudi Arabia Deal, AI Coins Recovery Ahead?

Author September 11, 2024

According to recent reports, the US government is contemplating the approval of Nvidia’s request to export advanced chips to Saudi Arabia and it could, at least according to some experts, boost the price of AI coins as well.

These chips would significantly enhance the country’s capability to develop and operate sophisticated AI models. The discussions around these chip sales emerged as a key yet unofficial agenda at the GAIN, a global AI summit hosted by Saudi Arabia.

Pursuing Nvidia’s H200 AI Coins, Balancing US-China Relations

A recent Reuters report showed that Saudi Arabia is actively pursuing access to Nvidia’s most advanced AI chips, the H200s, and is reportedly working to comply with US security requirements to expedite the acquisition process.

This move comes amidst US efforts to restrict China’s access to such technology, highlighting Saudi Arabia’s strategic positioning between the two superpowers. While the Kingdom is currently prioritizing US chips, it maintains potential ties with China as a backup plan in case access to American technology is restricted.

Despite a recent 15% decline in its stock value, Nvidia Corporation remains fundamentally strong, continuing to lead in the AI and data center sectors with increasing demand for its advanced GPUs and cutting-edge technologies like Hopper and Blackwell. In addition, it also triggered AI coins rally, reflecting the growing market confidence in the sector.

This positions Nvidia for robust growth amid the accelerating AI revolution, supporting a strong buy recommendation. Technically, Nvidia exhibits neutral momentum, yet shows signs of bullish divergence that could predict an upward trajectory, highlighting an opportunity for investors to benefit from Nvidia’s expected growth amidst ongoing market shifts.

ApeScreener Among the Top Gainers

The performance of AI coins in the cryptocurrency market is intrinsically tied to the progress and perception of the broader AI space.

These coins have recently seen significant gains, with a notable increase following a rise in Nvidia’s stock price, which dominates about 80% of the AI chip market. This surge has contributed to a 10.3% increase in the total market cap of artificial intelligence coins. ApeScreener was among the top gainers.
Additionally, daily trading volumes have spiked fueled by growing investor interest in AI technologies. This uptick comes as the tech industry anticipates further boosts from upcoming tech launches like the iPhone 16, which is expected to feature advanced AI capabilities.

Breakthroughs in AI technology, increased adoption across industries, and favorable regulations can all trigger positive sentiment, boosting the value of AI-related tokens.

On the other hand, technological setbacks, regulatory hurdles, or negative publicity surrounding AI can lead to price declines. As the AI landscape continues to evolve, investors in AI coins need to remain vigilant and informed about these factors to navigate this dynamic and sometimes volatile market.

Nvidia also collaborates with numerous global telecommunications companies, focusing its AI solutions on enhancing customer experiences and boosting operational efficiencies within networks, but not involving device-level integrations. In contrast, Qualcomm emphasizes the benefits of on-device AI, advocating that it increases privacy and security by processing data directly on handsets rather than relying on cloud-based systems. Earlier this year, the US revoked licenses for major tech firms like Intel and Qualcomm that allowed them to supply Huawei with chips for laptops and handsets. Despite this, Huawei’s upcoming Ascend 910C AI chip is anticipated to significantly impact the company’s technology offerings.

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