Nvidia (NASDAQ:NVDA) has faced investor concerns over its positioning in China, with worries mounting about export restrictions on AI chips to the Eastern superpower. In the meantime, however, the semiconductor giant has been securing deals in another key region.
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On Wednesday, CEO Jensen Huang took the stage in Paris at Nvidia’s GTC event, delivering a keynote where he delivered a keynote unveiling several important partnerships across Europe. He revealed collaborations with multiple European governments, including France, Germany, Italy, Spain, and the UK, to build out sovereign AI infrastructure. Among the headline initiatives is Europe’s first industrial AI cloud in Germany, designed specifically for the region’s manufacturing sector. The facility, powered by NVIDIA DGX B200 systems and RTX PRO Servers, will leverage 10,000 NVIDIA Blackwell GPUs to establish a cutting-edge AI factory.
In France, a major GPU deployment in partnership with Mistral AI will see 18,000 Blackwell GPUs installed near Paris. Meanwhile, in the U.K., NVIDIA Cloud Partners revealed the first stage of their AI infrastructure rollout, involving the deployment of 14,000 Blackwell GPUs to support new enterprise-focused data centers across the country.
Collectively, the EU is investing €30 billion in AI factories, which includes plans for five gigafactories, each equipped with 100,000 AI accelerators. Overall, Nvidia estimates that over the next several years, roughly $1.5 trillion will be invested in building AI sovereign factories.
While Europe’s pace has lagged behind the U.S. due to a less developed tech ecosystem, Citi analyst Atif Malik, who’s ranked among the top 15 on Wall Street, argues that the region’s distinct strengths and long-term commitments shouldn’t be overlooked.
The 5-star analyst counts three main takeaways from these developments. First, Europe looks set to keep importing advanced AI accelerators without major disruption, easing fears that escalating tariffs could spill into the AI space. Second, while the EU’s plan to deploy over 750,000 AI accelerators is ambitious, Malik notes it still lags behind the scale seen in the Middle East, where the UAE alone is eyeing 500,000 units annually. Given the region’s stronger access to capital and energy, he sees its lead in AI infrastructure investment as a natural outcome. Lastly, Malik views the surge in sovereign AI projects as a clear win for Nvidia, since many of these systems are likely to rely heavily on merchant GPUs.
What’s the takeaway for investors? Malik has a Buy rating on NVDA shares, with a $180 price target that suggests the stock could surge another 26% in the months ahead. (To watch Malik’s track record, click here)
The Citi analyst is far from alone. Of the 40 analysts weighing in, 35 are in the bull camp, joined by 4 Holds and just 1 lone Sell. All told, it comes down to a resounding Strong Buy consensus rating. The average price target of $172.36 implies shares could rise by ~21% over the next year. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.