Chip giant Nvidia (NASDAQ:NVDA) is experiencing solid demand for its artificial intelligence chips not only in the U.S. but also in several international markets. As per a Financial Times report, Saudi Arabia and the United Arab Emirates (UAE) are buying thousands of Nvidia’s high-performance chips amid the ongoing global race to build AI software.
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Gulf Nations Snap Up Nvidia’s AI Chips
Saudi Arabia has reportedly purchased at least 3,000 of Nvidia’s H100 chips through the public research institution King Abdullah University of Science and Technology (Kaust). The H100 is a $40,000 chip, which Nvidia CEO Jensen Huang described as the world’s first chip designed for generative AI. Kaust will receive over 3,000 of Nvidia’s high-performance chips, worth $120 million, by the end of this year.
Joining Saudi in the AI race is the UAE, which recently bought thousands of NVDA chips. It has launched its own open-source large language model (LLM), called Falcon, which is developed by the state-owned Technology Innovation Institute in Masdar City, Abu Dhabi. The Falcon model was trained on 384 A100 Nvidia chips.
The Gulf nations have the financial muscle to buy the resources and attract the talent required to achieve their AI ambitions. However, there have been concerns about the potential misuse of AI technology by oil-rich nations.
Aside from Gulf, there have been reports of Chinese tech giants piling up Nvidia’s high-performance GPUs for their generative AI projects.
Overall, the demand backdrop for Nvidia’s AI chips in the domestic as well as international markets seems robust.
What is the Prediction for Nvidia Stock?
On Monday, Nvidia shares rose 7% after Morgan Stanley expressed its optimism about the chip company’s future prospects due to the AI boom. Morgan Stanley analyst Joseph Moore continues to view NVDA as his Top Pick.
Nvidia earns Wall Street’s Strong Buy consensus rating based on 30 Buys and two Holds. The average price target of $506.72 implies about 16% upside. Shares have rallied over 199%.
Investors should note that JPMorgan analyst Harlun Sur is the most accurate analyst for NVDA stock, according to TipRanks. Copying his trades on NVDA and holding each position for one year could result in 96% of your transactions generating a profit, with an average return of about 78.1% per trade.
