Nvidia (NVDA), a major U.S. chipmaker, is teaming up with Humain, an AI company backed by Saudi Arabia’s Public Investment Fund. This new partnership is part of Saudi Arabia’s plan to invest in artificial intelligence and build up its cloud computing systems. The announcement came while President Donald Trump was visiting the Gulf region, where he signed an economic deal with Saudi Arabia to encourage more U.S. investment in the country.
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It is worth noting that Saudi Arabia wants to reduce its dependence on oil and become a global leader in AI. Indeed, Crown Prince Mohammed bin Salman recently launched Humain in order to develop and manage AI technologies within the country. Interestingly, Nvidia CEO Jensen Huang compared AI to basic infrastructure like electricity and the internet by saying that it’s now essential for every nation.
Nvidia and Humain plan to build “AI factories” in Saudi Arabia with up to 500 megawatts of power. These data centers will use hundreds of thousands of Nvidia’s most advanced GPUs over the next five years. Humain, which is led by CEO Tareq Amin, will offer AI services such as data centers, AI infrastructure, cloud technology, and advanced AI models. Unsurprisingly, Amin called it a huge step for the kingdom to become a major player in the AI world.
Is NVDA a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 34 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $164.35 per share implies 26.5% upside potential.
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