CECURITIES raised its target price for NVIDIA (NASDAQ: NVDA) projects from $ 150 to $ 160, noting the increasing demand for sovereign artificial intelligence infrastructure projects.
The company believes that these government -led initiatives, such as Amnesty International’s investments in the Kingdom of Saudi Arabia, can help compensate for future revenue losses from the restrictions of exporting American chips to China starting in 2026.
NVIDIA shares closed at $ 135.34 on Wednesday, an increase of $ 5.41 (4.16 percent) at the back of the target addresses of modified prices and Saudi addresses. However, in the pre -market trade on Thursday, NVDA decreased to $ 132.78 (a decrease of 1.89 percent), which put nearly 20.5 % less than the goal of the new Bank of America $ 160.
Sovereign artificial intelligence projects can pay $ 5 billion annually of revenues
Nafidia recently Declare Partners of the multi -year artificial intelligence infrastructure with Humain, a subsidiary of the General Investment Fund in the Kingdom of Saudi Arabia, along with the competing chipmaker AMD maker. According to Bofa estimates, these sovereign deals can generate between $ 3 billion and $ 5 billion annually, or up to $ 20 billion over several years.
The bank believes that sovereign artificial intelligence is the fast -growing market sector, which is expected to represent more than $ 50 billion in annual global spending, between 10 to 15 percent of the total infrastructure market for Amnesty International, which is estimated at 450 to $ 500 billion.
BOFA analysts also highlighted the expected NVIDIA value of $ 7 billion, with the first phase of the Saudi partnership alone, including 18,000 Blackwell graphics units of approximately $ 700 million. Over the next five years, they expect several hundreds of thousands of the most advanced graphics processing units in NVIDIA to sovereign customers.
The company wrote: “Amnesty International is well complementing commercial cloud investments,” adding that these projects focus on training LLMS models designed specifically for culture and local language, while alleviating issues such as limited strength in the American Data Center and restrictions on China’s exports.
Analysts were divided into Outlook Nvda this week
Bernstein’s analyst Stacy Rachton has created news, describing it as a strong indication of the continued demand for high -end artificial intelligence devices:
“For investors who are concerned about the sustainability of artificial intelligence, we now have another deep customer ready and able to spend large sums of money on a clear strategic payment as Saudi Arabia tries to put itself as a regional and global center of artificial intelligence,” he wrote in a memorandum of investors early on Wednesday.
Although Bofa raised her expectations, the feelings via Wall Street were mixed. On Monday, UBS reduced the target price from $ 180 to $ 175. On Tuesday, Da Davidson reiterated a neutral rating with a fixed goal of $ 120.
While NVIDIA still faces macro and competition risks from AMD, analysts believe that sovereign intelligence spending may become a strong long -term driver. With already billionaires and GPU operations in the pipeline, Bofa sees government contracts as a decisive supplement to commercial cloudy demand and a main factor that supports the high NVIDIA evaluation.
Distinctive image via Shutterstock
