Nvidia stock surged to a record high on Thursday after the U.S. government gave final clearance for the company to export several billion dollars in AI chips to the United Arab Emirates.
The Commerce Department's Bureau of Industry and Security recently issued the export licenses under a bilateral trade agreement reached in May, Bloomberg reported. As part of the pact, the UAE agreed to invest $1.4 trillion in the U.S. over the next decade.
On the stock market today, Nvidia stock rose 1.8% to close at 192.57. Earlier in the session, it hit an all-time high of 195.30.
On Sept. 30, Nvidia stock broke out of a flat base at a buy point of 184.48, according to IBD MarketSurge charts.
Also Thursday, Nvidia stock scored a Street-high price target from a Wall Street analyst on continued momentum for the buildout of AI data centers.
Cantor Fitzgerald analyst C.J. Muse reiterated his overweight, or buy, rating on Nvidia stock and upped his price target to 300 from 240.
"We are still in the early innings of a multitrillion (dollar) AI infrastructure buildout," Muse said in a client note.
Nvidia Stock Is On Four IBD Lists
In addition to hyperscale cloud service providers investing in artificial intelligence, other drivers of the market include AI startups known as neoclouds, enterprise adoption of AI and the emergence of physical AI in the form of autonomous vehicles and robots, he said.
"Thus, this is not a bubble, and we are still in the early innings of this investment cycle," Muse said.
The information technology industry is shifting from traditional computing to accelerated AI computing, he said.
"In the last 12 months, recommenders have adopted generative AI. Search has moved to generative AI. Social media to generative AI. User-generated content, ad recommendation, everything has moved from classical machine learning to generative AI," Muse said. "Nvidia sees $2 trillion in spending here from traditional compute to generative AI alone."
Nvidia stock is on four IBD lists: Big Cap 20, Sector Leaders, Stock Spotlight and Tech Leaders.
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