Oppenheimer on Nvidia’s Sovereign AI Boom

Key Takeaways

• Nvidia could be set to gain from growing demand for sovereign AI, Oppenheimer analysts said, after CEO Jensen Huang toured Europe last week and announced new deals and partnerships.
• The analysts estimated the total addressable global sovereign AI market could be $1.5 trillion, including $120 billion in Europe.
• Shares of Nvidia have added roughly a third of their value since the end of April.

Nvidia could be poised to capitalize on the growing demand for sovereign AI, according to Oppenheimer analysts, following CEO Jensen Huang’s recent European tour, which featured new deals and partnerships.

Oppenheimer noted that Nvidia “has been on the road meeting with world leaders to help sovereign nations build-out AI infrastructure,” estimating the total global sovereign AI market could reach a staggering $1.5 trillion, with $120 billion in Europe alone.

On Friday, Nvidia announced a partnership with Deutsche Telekom to advance Germany’s sovereign AI. The chipmaker stated this partnership “will enable Europe’s industrial leaders to accelerate manufacturing applications including design, engineering, simulation, digital twins and robotics.”

Huang’s stop in Germany followed a keynote address at the VivaTech conference in Paris, where a sovereign AI partnership with the European Broadcasting Union was announced. He also made a stop in the United Kingdom for London Tech Week.

Shares of Nvidia rose approximately 2% Monday, nearing $145 and approaching its January record close of $149.41. The stock has seen its value increase by about a third since the end of April.