Latest news with #sovereignAI
Japan Times
12 hours ago
- Business
- Japan Times
Japan leans into homegrown AI amid rising competition
Against a backdrop of rising international competition, Japan is taking a top-down approach to artificial intelligence development and seeking to capitalize on a rapidly changing, tech-centered global economy. McKinsey's 2025 Technology Trends Outlook, published Wednesday, says that the use of 'sovereign AI' is a trend gaining significant global traction, including in Japan. 'Countries and corporations have doubled down on sovereign infrastructure, localized chip fabrication, and funding technology initiatives such as quantum labs. This push for self-sufficiency isn't just about security; it's about reducing exposure to geopolitical risk and owning the next wave of value creation,' the report said. Sovereign AI — essentially a nation's ability to produce AI tools using domestic data, infrastructure and workforces — is increasingly a priority for countries seeking to utilize AI to respond to important domestic issues, while protecting against geopolitical vulnerabilities. Japan, which has poured trillions of yen into the domestic development of AI, chips and infrastructure, is among the countries aiming to develop localized models to target national priorities. The country has already deployed AI to carry out earthquake risk assessments and for emergency communications, and officials are also hopeful that AI may help tackle Japan's chronic labor shortage and help improve business competitiveness. In February 2024, the Ministry of Economy, Trade and Industry and the ministry-affiliated New Energy and Industrial Technology Development Organization launched the Generative AI Accelerator Challenge, with the aim of raising the platform model development capability in Japan through the provision of various types of support. In the same month, the AI Safety Institute was launched to monitor and develop globally informed standards. But despite the top-down efforts, the adoption of AI in Japan remains less pronounced than in other global markets. Just 26.7% of people in the country had used generative AI in fiscal 2024, which ended in March, compared with China's 81.2% and the U.S.'s 68.8%, according to a recently published government white paper on information and communications. The same survey showed that 49.7% of Japanese companies have plans to use generative AI, while in the U.S. and China, more than 80% of firms plan to adopt it in their operations. Despite Japan having a more cautious approach than other markets, large players such as SoftBank and Fujitsu have thrown their weight behind the rapidly developing technology. The McKinsey report notes that, despite the rapid growth of generative AI globally, organizations remain some way off from fully utilizing its corporate potential. 'The big gap between potential and progress can be explained by the time required for organizations to adapt, develop complementary innovations, and reskill their workforces. Therefore, the true economic benefits of gen AI may become visible only after substantial organizational and structural changes have taken place,' the report said.
Yahoo
12-07-2025
- Business
- Yahoo
Nvidia Stock May Double in the Next 3 Years. Here's Why.
Nvidia stock has regained its momentum in recent months and should be able to sustain it in the long run as well. The chip giant's addressable market improved thanks to the rollout of sovereign AI infrastructure across the globe. Nvidia's market share and the potential data center revenue growth that it could clock should help double its market cap in the next three years. 10 stocks we like better than Nvidia › Shares of Nvidia (NASDAQ: NVDA) are flying once again following a difficult start to the year. The semiconductor giant's stock jumped 42% in the past three months, easily crushing the 15% gains clocked by the S&P 500 index during this period. So, anyone who bought Nvidia stock while it was sliding earlier in 2025 must be sitting on nice gains right now. However, if you are one of those who missed out on Nvidia's impressive rally, you can still consider buying it right now, as there is a good chance that it could double in the next three years. Let's look at the reasons why. Investment bank Citi has just raised its price target on Nvidia to $190 per share, citing Nvidia's terrific opportunity in sovereign artificial intelligence (AI) infrastructure (i.e., government-related AI). Citi analysts said that the demand for sovereign AI infrastructure is already contributing "billions of dollars" in revenue for Nvidia in 2025. Importantly, Citi analysts say this business segment is expected to ramp up further as the chip giant is involved in nearly every deal for building sovereign AI infrastructure. Nvidia struck agreements with several European nations, including the U.K., France, Italy, and Germany, to deploy its Blackwell AI graphics processing units (GPUs) to help them create an AI ecosystem so that they can "strengthen digital sovereignty, support economic growth and position the continent as a leader in the AI industrial revolution," according to a release from Nvidia. On the other hand, Nvidia's sovereign business is also gaining traction in the Middle East. From Saudi Arabia to Qatar to the U.A.E., the demand for Nvidia's AI accelerators is booming in these markets. In fact, Nvidia points out that it is helping in the rollout of sovereign AI infrastructure across five continents, including South America, Asia, and Africa. Not surprisingly, Bank of America estimates that the sovereign AI infrastructure market could generate annual revenue of $50 billion in the long run. Nvidia's relationships with countries across the globe suggest that it is well placed to corner a nice chunk of this sizable opportunity. As such, it is easy to see why Citi is forecasting Nvidia's data center revenue to increase by 5% in fiscal 2027, followed by an 11% jump in fiscal 2028. Sales of data center networking chips, on the other hand, are forecast to increase by 12% in the next fiscal year and 27% in the one after. However, don't be surprised to see this business growing at a faster pace. After all, Citi estimates a total addressable market (TAM) worth $563 billion for AI compute chips by 2028, with another $119 billion coming from AI networking chips. Nvidia's data center revenue stood at $115 billion in fiscal 2025 (which ended in February this year), growing by an impressive 142% from the prior year. Given that Nvidia is the dominant player in the data center compute market and is gaining traction in networking chips as well, it won't be surprising to see its data center revenue exceeding analysts' expectations going forward. Nvidia controlled an estimated 92% of the AI data center GPU market last year. Even if its market share drops to 50% in the next three years, the company's revenue from sales of AI chips could hit $280 billion (based on the $563 billion end-market opportunity pointed out above). That would be more than double the company's data center revenue in fiscal 2025. Nvidia's revenue from the non-data center business stood at $15 billion last year. The good part is that the company sees healthy growth in markets such as gaming, which opens the possibility of an uptick in the company's non-data center business as well. But even if we assume that Nvidia's revenue from the non-data center business grows to $20 billion after three years and hits $280 billion in revenue from selling data center chips, its top line could jump to $300 billion. Nvidia stock trades at just over 26 times sales. It can maintain this premium multiple after three years, considering that its top line could more than double from last year's reading of $130.5 billion, growing at an annual rate of 32%. Another reason why Nvidia can continue to sport a premium valuation is that it is unlikely to lose a lot of share in the AI chip market because of its control over the supply chain. A sales multiple of 26 and a projected top line of $300 billion could take Nvidia's market cap to $7.8 trillion, which is just about double its current market cap. Investors, therefore, can still consider buying this AI stock hand over fist as it seems capable of soaring higher. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and Nvidia. The Motley Fool has a disclosure policy. Nvidia Stock May Double in the Next 3 Years. Here's Why. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Nvidia Powers Europe's AI Sovereignty Push with Blackwell-Packed Industrial Cloud and Gigafactories
NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks that Donald Trump owns. At GTC Paris on June 11, 2025, Nvidia CEO Jensen Huang revealed compelling strides in Europe's AI build-out. He showcased the company's deepening role in sovereign AI infrastructure. The centerpiece of the announcement: a world-first industrial AI cloud in Germany, featuring 10,000 of Nvidia's Blackwell GPUs across DGX B200 and RTX Pro servers, designed to power advanced simulation, digital twins, and industrial automation. Partners include major manufacturers like BMW, Maserati, and Volvo, collaborating to accelerate AI-driven design and factory operations. Simultaneously, Nvidia is building a network of AI hubs and factories in collaboration with telecoms Orange, Telefónica, Swisscom, Fastweb, and Telenor. These initiatives aim to help Europe establish AI sovereignty, reducing reliance on U.S. hyperscaler infrastructure. Government leaders from the U.K., France, Germany, and Italy have pledged support, including public funding for AI 'gigafactories.' NVIDIA Corporation (NASDAQ:NVDA)'s dominance in GPU architecture has made it the backbone of the global AI economy, and it's not slowing down. While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Nvidia Stock Gets Price Target Bump From Citi on 'Sovereign AI' Demand Surge
Citi analysts raised their price target for Nvidia stock to $190 from $180, citing growing demand for sovereign AI. Nvidia is 'involved in essentially every sovereign deal," the bank said, as governments and other organizations invest heavily in AI. Last month, Nvidia CEO Jensen Huang announced multiple sovereign AI partnerships during a European (NVDA) is poised to take advantage of growing demand for sovereign artificial intelligence, Citi analysts wrote Monday, as governments and other organizations invest heavily in AI. The bank raised its price target for Nvidia stock to $190 from $180, lifting it further above the Visible Alpha analyst consensus of $174. Citi expects the AI data center market to reach $563 billion in 2028, up from a prior estimate of $500 billion, based on higher-than-expected sovereign AI demand. That benefits Nvidia, which is 'involved in essentially every sovereign deal,' Citi said. Sovereign AI refers to artificial intelligence capabilities developed for a single entity, often a national government, run on systems under that entity's control. Nvidia CEO Jensen Huang last month announced multiple sovereign AI partnerships during a European tour that included stops in the United Kingdom, France and Germany. The semiconductor titan also recently partnered with Humain, an AI subsidiary of Saudi Arabia's sovereign wealth fund. Bank of America analysts have said they expect 'every major country' to invest in sovereign AI, 'generating high-tech employment, and serving critical healthcare, defense, industrial, financial and cyber needs.' Oppenheimer said the global sovereign AI market could be $1.5 trillion, including $120 billion in Europe. Shares of Nvidia were less than 1% lower in recent trading Monday. They ended last week at a record high. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
NVDA: Oppenheimer Sees Trillion-Dollar AI Opportunity for Nvidia
June 19 - Nvidia (NASDAQ:NVDA) could benefit from rising global interest in sovereign artificial intelligence systems, according to a recent client note from Oppenheimer, following CEO Jensen Huang's high-profile tour across Europe. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The firm said Nvidia is working closely with governments to help them build national AI infrastructure. Oppenheimer estimates the total addressable market for sovereign AI could reach $1.5 trillion, with Europe accounting for about $120 billion of that potential. Last week, Nvidia entered a new partnership with Deutsche Telekom to support Germany's push into sovereign AI. The deal aims to accelerate industrial use cases including robotics, simulation, and digital twins. Huang also announced a collaboration with the European Broadcasting Union during a keynote at the VivaTech conference in Paris. He later visited London for further engagements at London Tech Week, as Nvidia expands its sovereign AI strategy across key European markets. Shares of Nvidia have climbed around one-third since late April, as investors weigh the potential of sovereign AI alongside other growth drivers in its enterprise and data center businesses. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
