(Reuters) - Nvidia ( NVDA ) CEO Jensen Huang's personal net worth jumped to around $120 billion on Tuesday, up from $80 billion last year, as a boom in demand for the company's artificial intelligence chips has powered a steep rally in its shares.

Nvidia ( NVDA ) hit $3 trillion in market value after it agreed to sell hundreds of thousands of AI chips in Saudi Arabia with many chips to an AI startup launched by its sovereign wealth fund, in a sign demand for its top-line processors is still booming.

The company's shares closed 5.6% higher at $129.93. The deal came as a part of U.S. President Donald Trump's Gulf tour, which he kicked off in Saudi Arabia with plans to visit the UAE later in the week.

Huang has played a critical role in making Nvidia ( NVDA ) one of the world's most valuable companies by positioning the chipmaker as the dominant force in the AI semiconductor industry.

The latest boost to his net worth puts him among the world's wealthiest people, but just out of the top ten, according to Forbes' real-time billionaires list.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)