$NVIDIA(NVDA.US) $Taiwan Semiconductor(TSM.US) each hold a significant amount of shares. The night before last, I sold a small portion of calls at 140 and 200 respectively to hedge against potential pullback risks. Considering last night's major trade news between the U.S. and Saudi Arabia, I won't hedge the remaining positions—I believe there's a good chance they'll hit new highs.

The main content of this trade is Saudi Arabia purchasing a package of weapons and equipment from the U.S. for a whopping $140B. On the U.S. side, NVDA & AMD were approved to sell large quantities of semiconductor chips to Saudi Arabia—the former being "hundreds of thousands of top-tier chips (GB300)" and the latter up to "$10B."

To me, this is blatant "reverse re-export trade." They won't even sell downgraded products to mainland China, but for demand outside the mainland, who needs to go through the Middle East to buy AI cards? Is Saudi Arabia building its own oil-related large model? With this move, Trump has something to show domestically (strong chip restrictions on mainland China) while strengthening Middle East relations, selling tons of military equipment, and gaining both prestige and profit. This deal is actually quite high in Art content. In a way, Saudi Arabia's computing center is comparable to Southeast Asia's role for mainland China.