Saudi Arabia and NVIDIA form strategic AI partnershi

RIYADH - Saudi Arabia’s Public Investment Fund subsidiary HUMAIN has announced a strategic partnership with NVIDIA, the semiconductor giant currently valued at $3.14 trillion, aiming to establish the Kingdom as a leader in AI and digital transformation. The collaboration will utilize NVIDIA’s platforms and expertise to build hyperscale AI data centers and develop the country’s AI capabilities. According to InvestingPro data, NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.

HUMAIN plans to construct AI factories with a capacity of up to 500 megawatts, powered by NVIDIA GPUs. The initial phase includes deploying an 18,000 GPU NVIDIA supercomputer for sovereign AI model training and deployment. This infrastructure aims to accelerate innovation across various industries in Saudi Arabia and globally. NVIDIA’s strong market position is reflected in its impressive 114.2% revenue growth over the last twelve months, as reported by InvestingPro.

The partnership also involves implementing NVIDIA Omniverse platform for creating digital twins, enhancing efficiency and safety in sectors like manufacturing and logistics. This aligns with Saudi Arabia’s Industry 4.0 aspirations.

Furthermore, the initiative includes large-scale workforce upskilling, offering AI and robotics training to thousands of Saudi citizens. This move is in line with Vision 2030, focusing on economic diversification and establishing digital leadership.

Jensen Huang, NVIDIA’s CEO, emphasized the importance of AI infrastructure for national growth, while His Excellency Eng. Abdullah Alswaha, Minister of Communications and Information Technology, and Tareq Amin, CEO of HUMAIN, highlighted the partnership’s role in driving Saudi Arabia’s industrial revolution and AI leadership.

This partnership is expected to bolster Saudi Arabia’s position in the global AI landscape, providing a robust foundation for future technological advancements. NVIDIA’s "GREAT" financial health score and strong market presence make it well-positioned to deliver on these ambitious projects. For detailed insights into NVIDIA’s financial metrics and growth potential, investors can access comprehensive analysis through InvestingPro, which offers over 16 additional exclusive ProTips and detailed financial metrics.

The information in this article is based on a press release statement.

In other recent news, NVIDIA Corporation’s first fiscal quarter revenue is anticipated to slightly exceed the $43 billion guidance, despite the H20 ban impacting its projections. UBS analyst Timothy Arcuri has adjusted NVIDIA’s price target to $175, down from $180, while maintaining a Buy rating. The analyst forecasts NVIDIA’s first fiscal quarter earnings per share at approximately $0.76, which is below the consensus estimate of $0.89. Piper Sandler also reaffirmed an Overweight rating on NVIDIA with a $150 price target, highlighting potential risks to data center revenue due to reduced capital expenditures. Meanwhile, NVIDIA shares saw a decline amid a broader pullback in tech stocks, including other members of the Magnificent Seven, following concerns over trade policy. The U.S. and China recently agreed to temporarily lower tariffs, which sparked a rally in these stocks earlier. Despite the challenges, UBS maintains a positive outlook on NVIDIA’s long-term growth, expecting earnings per share to improve in fiscal year 2027. Investors continue to monitor developments, particularly in data center revenue and the potential resumption of GPU shipments to China.

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