Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Technology
PATRICK SEITZ

Next Big Buyers Of Nvidia AI Systems: Sovereign Nations

Internet cloud service providers have comprised the first wave of buyers of artificial intelligence systems from Nvidia. The next wave is likely to be sovereign nations, a Wall Street analyst says. Nvidia stock rose Friday.

"Nvidia sits on the cusp of an entirely new wave of demand from global enterprises and sovereigns — with each sovereign potentially as big as a large U.S. cloud customer," UBS analyst Timothy Arcuri said in a client note.

At its GTC 2024 conference this week, Nvidia mentioned Japan, Malaysia, South Korea and Sweden as customers, Arcuri said. The company also mentioned the Middle East market, where Saudi Arabia and United Arab Emirates are likely buyers, he said.

Those are in addition to major projects underway with Singapore, Switzerland and France.

Nvidia Stock Climbs Higher

Arcuri reiterated his buy rating on Nvidia stock and raised his price target to 1,000 from 800.

On the stock market today, Nvidia stock rose 3.1% to close at 942.89. Nvidia shares have risen for five consecutive trading days.

The graphics-chip maker saw its stock surge higher this week on news from its GTC 2024 conference.

Arcuri predicts Nvidia will generate sales of $112.5 billion in calendar 2024, up 94% from last year. Analysts polled by FactSet are looking for sales of $105.6 billion this year.

"We now see another solid growth year in calendar 2025 with revenue approaching $150 billion (about 30% growth)," he said. Wall Street is targeting sales of $131.5 billion next year.

Nvidia stock is on five IBD stock lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders and Tech Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.