/Jen-Hsun%20Huan%20NVIDIA)
Nvidia (NVDA) shares are inching further up on Wednesday after the chipmaker signed a multi-year AI infrastructure deal with Humain – a new startup launched by the Saudi Arabia’s sovereign wealth fund.
Over the next five years, the said duo will build AI factories powered by hundreds of thousands of NVDA’s most advanced chips to establish the Kingdom as a global leader in artificial intelligence, as per their joint press release.
Following today’s gain, Nvidia stock is up nearly 45% versus its low on April 4.
What the Humain Deal Means for Nvidia Stock
NVDA shares are rallying on the Humain deal this morning as it reinforces the giant’s leadership in artificial intelligence hardware.
Investors are rewarding the AI darling also because recent reports indicate the White House could soon announce a deal that would enable Nvidia to sell its advanced chips in large volumes to the United Arab Emirates as well.
These government-backed agreements are significant for NVDA investors as they will likely help the company sustain its revenue growth in the years ahead.
Note that the Nvidia-Humain transaction is part of the $600 billion that President Donald Trump secured in investments for U.S. companies during his recent visit to the Saudi Arabia.
Citi Analyst Reiterates Bullish View on NVDA
The Humain deal made Citi analyst Atif Malik reiterate his “Buy” rating on Nvidia stock today.
In his research note, he dubbed NVDA’s team up with the Saudi venture “a good start to what’ll likely be a new country-to-country negotiation approach by the US government.”
Malik currently has a $150 price target on the AI stock that signals potential for another 11% upside from current levels.
Citi’s bullish note arrives a couple weeks before Nvidia is scheduled to report its financial results for the first quarter. Consensus is for the Nasdaq-listed firm to earn $0.83 a share in Q1 – sharply higher than $0.58 per share it earned in the same quarter last year.
Wall Street Remains a Fan of Nvidia in 2025
Interestingly, Citi is among the more cautious firms on Nvidia shares at writing.
The consensus rating on NVDA currently sits at “Strong Buy” with a mean target of an even higher $166 indicating potential upside of close to 25% from here.
