AI Chips Update - Saudi Arabia Partners With NVIDIA to Boost AI Leadership

Saudi Arabia is set to emerge as a global leader in AI technology through a strategic partnership with NVIDIA, focused on establishing AI infrastructure across the nation. This collaboration aims to build AI factories powered by NVIDIA’s advanced GPUs, with a projected capacity of up to 500 megawatts over the next five years. Key initiatives include the deployment of an NVIDIA Omniverse Cloud for simulating AI solutions with digital twins and the establishment of a sovereign AI factory with 5,000 Blackwell GPUs. Additionally, thousands of developers will be trained to tackle complex challenges in AI and accelerated computing, aligning with Saudi Vision 2030's objectives of economic diversification and digital leadership.

• NVIDIA (NasdaqGS:NVDA) last closed at $129.93 up 5.6%.

In other trading, First Solar (NasdaqGS:FSLR) was a standout up 22.7% and ending the day at $191.60. In the meantime, TongweiLtd (SHSE:600438) trailed, down 3.1% to end the day at CN¥17.79.

NVIDIA's focus on AI scaling through Blackwell architecture could rapidly impact growth across key sectors. Explore our detailed narrative on NVIDIA to see how this opportunity could evolve.

Don't miss our Market Insights article, "Investing In Innovation to Beat Stagflation," which discusses how AI chip innovations offer opportunities in uncertain markets—read it now to stay ahead!

Best AI Chip Stocks

• Advanced Micro Devices (NasdaqGS:AMD) finished trading at $112.46 up 4%. This week, AMD announced strategic alliances with HUMAIN to build a global AI infrastructure and launched the EPYC 4005 Series processors for enterprise and SMBs.
• ASML Holding (ENXTAM:ASML) closed at €683.70 up 2.5%.
• QUALCOMM (NasdaqGS:QCOM) closed at $151.34 down 0.5%. Two days ago, Qualcomm extended discussions for a potential acquisition of Alphawave, with a new decision deadline of 27 May 2025.

Next Steps

• Reveal the 53 hidden gems, such as Advantest, SK hynix and Skyworks Solutions, among our AI Chip Stocks screener with a single click here.
• Ready For A Different Approach? AI is about to change healthcare. These 24 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "Saudi Arabia and NVIDIA to Build AI Factories to Power Next Wave of Intelligence for the Age of Reasoning" from NVIDIA on GlobeNewswire (published 13 May 2025)

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com