NVIDIA has secured a five-year deal with Saudi Arabia's Humain to supply advanced semiconductors, aimed at establishing significant data center capacity and leveraging opportunities within the Middle Eastern tech market.

Target Company Overview

NVIDIA Corporation (NASDAQ: NVDA) is positioned as a leader in the semiconductor industry, focusing on graphics processing units (GPUs) for gaming, artificial intelligence (AI), data centers, and automotive applications. Recently, NVIDIA has experienced significant stock appreciation, attributed to easing trade tensions with China and improved economic conditions globally. The company's stock price increased by 50% from its April low to mid-May highs, suggesting an optimistic market sentiment and potential for further gains.

In a strategic move, NVIDIA has entered into a landmark agreement with Saudi Arabia’s Humain to supply hundreds of thousands of its cutting-edge semiconductors over the next five years. This deal aims to establish nearly two gigawatts of data center capacity by 2030, with the initial phase utilizing 18,000 Grace Blackwell GPUs integrated into a supercomputer for the benefit of Saudi Arabia's businesses and populace. Humain, a newly formed entity backed by the Public Investment Fund (PIF) of Saudi Arabia, aims to enhance the country’s technological infrastructure as part of its broader vision for economic diversification.

Industry Overview in Saudi Arabia

The technology and semiconductor sectors in Saudi Arabia are witnessing a transformative shift, driven by government initiatives to diversify the economy beyond oil dependence. This has led to increased investment in frameworks aimed at digita