Background of the Agreement
Nvidia has made significant strides through a major agreement in Saudi Arabia that could sustainably affect the stock price and growth of the company. This development is of great significance for investors in the German-speaking region.
The agreement was announced during a state visit by US President Donald Trump to Saudi Arabia on May 13, 2025. Nvidia has entered into a strategic partnership with the Saudi startup Humain, which is a subsidiary of the Saudi Public Investment Fund. This partnership aims to establish Saudi Arabia as a leader in artificial intelligence (AI) and digital transformation.
Details of the Partnership
The partnership involves the deployment of Nvidia’s advanced technologies to establish hyperscale AI data centers in Saudi Arabia. In the first phase, an NVIDIA supercomputer with 18,000 GPUs will be used for sovereign AI model training and deployment. This infrastructure is intended to accelerate innovations across various industries in Saudi Arabia and worldwide.
Impact on Nvidia
The agreement has led to a significant increase in Nvidia’s stock price as investors respond to the lucrative prospects of the partnership. Nvidia’s strong market position and impressive revenue growth of 114.2% over the past twelve months also contribute to its attractiveness.
Importance for Investors
For investors in the German-speaking area, this development is highly significant as it shows that Nvidia continues to play a leading role in the technology industry. The partnership with Saudi Arabia could lead to a further strengthening of Nvidia’s market position in the long term, thus increasing interest in the company’s shares.
Summary
Overall, the partnership between Nvidia and Saudi Arabia has the potential to sustainably influence Nvidia’s stock price and growth. This development underscores the strategic importance of Nvidia’s technologies in the global AI infrastructure and offers investors a promising outlook for future investments.