NVIDIA, Saudi Arabia partner for AI and digital infrastructure

RIYADH - NVIDIA Corporation (NASDAQ: NVDA), the semiconductor giant with a market capitalization of $3.17 trillion and impressive revenue growth of 114% year-over-year, has entered into partnerships with the Kingdom of Saudi Arabia aimed at transforming the country into a leading hub for artificial intelligence (AI), cloud computing, digital twins, and robotics. This collaboration was announced today during a state visit by U.S. President Donald Trump and Crown Prince Mohammed bin Salman. According to InvestingPro data, NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.

The initiative is set to leverage sovereign AI infrastructure and expertise to elevate Saudi Arabia among global hyperscale AI leaders. NVIDIA’s founder and CEO, Jensen Huang, emphasized that AI is a crucial infrastructure for nations, akin to electricity and the internet. As a prominent player in the Semiconductors & Semiconductor Equipment industry with an industry-leading gross profit margin of 75%, NVIDIA is well-positioned to deliver on these ambitious plans. For detailed analysis of NVIDIA’s market position and growth potential, investors can access comprehensive research through InvestingPro, which offers exclusive insights and financial metrics for over 1,400 US stocks. The partnership with HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund focused on AI, involves a significant investment to construct AI factories in the country. These factories are projected to have a capacity of up to 500 megawatts, powered by several hundred thousand of NVIDIA’s advanced GPUs within the next five years.

The first phase of deployment will include an 18,000 NVIDIA GB300 Grace Blackwell AI supercomputer, along with NVIDIA InfiniBand networking. Additionally, HUMAIN will implement the country’s first NVIDIA Omniverse Cloud to simulate and test AI solutions using digital twins. NVIDIA will also contribute to enhancing the nation’s computing ecosystem by training thousands of developers to tackle complex challenges through accelerated computing and AI.

In collaboration with the Saudi Data & AI Authority (SDAIA), up to 5,000 Blackwell GPUs will be deployed for a sovereign AI factory to enable smart city solutions. The partnership will also focus on training government and university scientists and engineers in model development and deployment for physical and agentic AI.

Aramco Digital plans to establish AI computing infrastructure, work with NVIDIA’s startup ecosystem, set up AI enterprise platforms, and create an engineering and robotics center of excellence incorporating NVIDIA platforms. These initiatives are expected to aid industries such as energy, manufacturing, and logistics in developing and deploying innovative AI and digital twin solutions to drive regional growth and prosperity, while enhancing efficiency, safety, and sustainability.

The efforts align with Saudi Arabia’s Vision 2030 goals of economic diversification and establishing a digital leadership position. This information is based on a press release statement from NVIDIA.

In other recent news, NVIDIA has announced a strategic partnership with Saudi Arabia’s HUMAIN, a subsidiary of the Public Investment Fund, to advance AI development in the region. This collaboration aims to build AI factories and hyperscale data centers using NVIDIA’s GPUs, aligning with Saudi Arabia’s Vision 2030 for digital transformation and economic diversification. Additionally, UBS has adjusted NVIDIA’s price target to $175, down from $180, while maintaining a Buy rating. The analyst from UBS anticipates that NVIDIA’s revenue for the first fiscal quarter will slightly exceed the $43 billion guidance, despite challenges like the H20 ban.

DA Davidson has reiterated a Neutral rating on NVIDIA with a steady price target of $120, highlighting the importance of analyzing the company’s individual business segments amidst ongoing uncertainties with China. The firm emphasizes that geopolitical factors and sector-specific trends are influencing NVIDIA’s performance. Furthermore, NVIDIA’s partnership with HUMAIN includes deploying the NVIDIA Omniverse platform to enhance efficiency in sectors such as manufacturing and logistics through the creation of digital twins.

The initiative also involves large-scale AI and robotics training for thousands of Saudi citizens, supporting the Kingdom’s ambitions to lead in AI and digital infrastructure. Meanwhile, Wolfe Research has raised concerns about AI spending in 2026, despite a projected 35% increase in 2025, suggesting potential risks to future spending levels. These developments reflect NVIDIA’s strategic positioning and ongoing challenges in the global tech landscape.

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