Nvidia (NVDA) stock climbs as a major AI partnership with Saudi Arabia and a $23 billion CoreWeave infrastructure plan drive bullish investor sentiment.

NVIDIA, a global leader in AI computing infrastructure, and HUMAIN, the newly formed AI arm of Saudi Arabia's Public Investment Fund, have announced a significant strategic partnership.

Saudi Arabia is expanding its efforts to extend economic opportunities while positioning the country at the forefront of global AI innovation. According to the Global AI Index, the country’s public AI spending commitments significantly outrank those of the US and China, totalling more than $40 billion over the next decade.

Nvidia stock jumped over 3% early Wednesday after the company and fellow chipmakers announced billions of dollars worth of AI deals with Saudi Arabia.

Nvidia, AMD, AWS, and others struck $100 billion in AI deals this week, aiming to profit from cheaper power and faster access to the growing Middle Eastern market for IT services.

The HUMAIN deal could be worth up to $11.5 billion, highlighting Nvidia's global demand and strategic positioning in AI infrastructure. Valuation upside hinges on EV/EBITDA multiples; I set a $156 price target, implying 15.6% upside, and maintain my buy rating.

NVIDIA and the Saudi Data & AI Authority (SDAIA) will deploy up to 5,000 Blackwell GPUs for a sovereign AI factory and enable smart city solutions. NVIDIA and SDAIA will train government and university scientists and engineers on how to develop and deploy models for physical and agentic AI.

The deals served as the coming out party for Humain, a state-backed artificial intelligence (AI) company that operates under the Kingdom’s Public Investment Fund (PIF) and is chaired by Crown Prince Mohammed bin Salman. The company is part of Saudi Arabia’s Vision 2030 strategy to diversify the Saudi economy away from just oil sales.