Nvidia will supply semiconductors to a new Saudi Arabian artificial intelligence company, Humain, for a 500-megawatt AI data center build-out. The news drove Nvidia stock higher on Tuesday.
Nvidia Chief Executive Jensen Huang announced the partnership on stage at the Saudi-U.S. Investment Forum in Riyadh. Humain is a new AI subsidiary of Saudi Arabia's Public Investment Fund. The announcement coincided with U.S. President Donald Trump's visit to the country.
Humain's new data centers will be powered by several hundred thousand of Nvidia's most advanced graphics processing units over the next five years, according to a news release.
Nvidia rival Advanced Micro Devices also is getting a share of AI semiconductor business from Humain, AMD said in a news release.
Humain Chief Executive Tareq Amin said the company will build 1.9 gigawatts of data centers by 2030, Bloomberg reported. Data centers are often measured in terms of their power consumption.
On the stock market today, Nvidia stock rose 5.6% to close at 129.93. With the move higher, Nvidia climbed above its 200-day moving average line, a key technical level.
The rise above the 200-day line also broke a downward trendline, providing an early entry for aggressive investors, based on IBD analysis.
Meanwhile, AMD stock advanced 4% to close at 112.46.
On Monday, Melius Research analyst Ben Reitzes reiterated his buy rating on Nvidia stock with a price target of 150.
"We still are big believers in the AI theme and Nvidia's leadership in the trend," Reitzes said in a client note. "Nvidia has significant tailwinds from inferencing and a clear line of sight on hyperscaler orders through year-end."
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