Nvidia is making a significant push beyond its Silicon Valley roots, signing deals with countries and upstart cloud players to reduce its dependence on tech giants like Microsoft, Amazon, and Google. The chipmaker aims to own the global AI game, not just play a part in someone else’s.
Recent events show Nvidia’s commitment to this strategy, including a multibillion-dollar chip deal with Saudi Arabia’s Humain state-backed AI company. This partnership will build a massive 500-megawatt data center powered by over 18,000 of Nvidia’s latest Blackwell AI chips.
The UAE is also partnering with the US to create one of the world’s largest AI data centers, further solidifying Nvidia’s position in the Middle East and beyond. The company is targeting new wave of partners, including national governments and fast-rising cloud upstarts, to expand its reach into enterprise customers who run their own IT infrastructure.
CEO Jensen Huang believes in this plan, stating he is more certain about opportunities beyond Big Tech than a year ago. Nvidia’s efforts are also driven by shifting US export policies, which will benefit the company even more abroad.
The company has faced challenges in China but is now working on downgraded AI chips for the market and boosting its presence elsewhere, including a new R&D center in Shanghai. Nvidia aims to be the go-to provider for anyone building serious AI infrastructure, positioning itself for significant growth.
Wall Street analysts rate Nvidia as a Strong Buy, with an average stock price target of $164.51, implying a 21.50% upside potential.
Source: https://www.tipranks.com/news/nvidia-nvda-expands-beyond-big-tech-billion-dollar-saudi-deal-kicks-off-global-ai-play