Nvidia, AMD Sell Chips to Saudi Arabia
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Nvidia (NVDA) stock climbs as a major AI partnership with Saudi Arabia and a $23 billion CoreWeave infrastructure plan drive bullish investor sentiment.
Saudi Arabia is expanding its efforts to extend economic opportunities while positioning the country at the forefront of global AI innovation. According to the Global AI Index, the country’s public AI spending commitments significantly outrank those of the US and China, totalling more than $40 billion over the next decade.
9hon MSN
NVIDIA, a global leader in AI computing infrastructure, and HUMAIN, the newly formed AI arm of Saudi Arabia's Public Investment Fund, have announced a significant strategic partnership.
The HUMAIN deal could be worth up to $11.5 billion, highlighting Nvidia's global demand and strategic positioning in AI infrastructure. Valuation upside hinges on EV/EBITDA multiples; I set a $156 price target, implying 15.6% upside, and maintain my buy rating.
Nvidia stock jumped over 3% early Wednesday after the company and fellow chipmakers announced billions of dollars worth of AI deals with Saudi Arabia.
The deals served as the coming out party for Humain, a state-backed artificial intelligence (AI) company that operates under the Kingdom’s Public Investment Fund (PIF) and is chaired by Crown Prince Mohammed bin Salman. The company is part of Saudi Arabia’s Vision 2030 strategy to diversify the Saudi economy away from just oil sales.
The Trump administration forged a preliminary deal with the United Arab Emirates involving importing 500,000 of Nvidia Inc.’s (NASDAQ:NVDA) advanced AI chips annually. The deal was at least through 2027 but could be in place until 2030,