June 18, 2025 04:29 PM GMT M Update S. Korea Telecoms, Media & Internet | Asia Pacific Our thoughts on AI enthusiasm We believe market sentiment toward AI could be running ahead of fundamentals, as post-election market exuberance continues to play out while details are lacking. Sovereign AI will be a key debate – and a formidable challenge, in our view. AI-related stocks showed "buy first, ask questions later" sentiment today: Led by Naver (+20% vs. 0.7% for the KOSPI), many Internet stocks made two-sigma-p ...

And US tech firms have been deepening ties to Gulf states investing heavily in AI with tensions up in the Middle East. Dear Jabosa digs into the risks of sovereign AI in today's tech check. Hi Dearra.Hey Kelly. So sovereign AI and that is to remind you countries that want to build their own AI systems. It hasn't always come with with a clear business case.In many of these cases they were government-ledd projects built for political prestige rather than commercial demand. And the Middle East is a perfect exa ...

US tech firms have been deepening ties to the Middle East with Gulf States investing heavily in AI. But as this geopolitical turmoil in the region heats up, Debos is looking at how those ties are starting to expose the risks of that so-called sovereign AI bucket we talked so much about last month, Steve. So much about.And remember, Carl, that sovereign AI, it was supposed to be the next big thing. A wave of national efforts across the Middle East and beyond picking up where China left off after US exports c ...

Core Message - Nvidia is positioning itself as a key player in helping Europe build its artificial intelligence infrastructure, emphasizing the importance of AI as a foundational technology for the region's future [2][5]. Group 1: Nvidia's Role in AI Infrastructure - Jensen Huang, CEO of Nvidia, has articulated that the company is more than just a chip manufacturer, framing Nvidia as an infrastructure firm essential for developing AI capabilities in Europe [5]. - Huang highlighted the need for Europe to collaborate and build a joint capacity in AI to compete effectively on a global scale [6]. - A significant partnership was announced between French startup Mistral and Nvidia to create an AI cloud utilizing Nvidia's GPUs [6]. Group 2: Sovereign AI and European Potential - The concept of "sovereign AI" was discussed, focusing on the importance of establishing data centers within national borders to serve local populations [7]. - Huang praised the potential of the U.K., France, and Europe in the AI sector, indicating a positive outlook for the region's capabilities [7]. Group 3: Competitive Landscape with China - Nvidia has faced challenges in selling advanced chips to China due to U.S. export controls, resulting in a $4.5 billion loss on unsold inventory in its last quarterly results [8]. - Huang noted that while Huawei is currently a generation behind Nvidia in AI chip technology, the company is leveraging its resources to catch up [9]. - Concerns were raised about the strategic implications of U.S. companies not engaging with the Chinese market, which could allow Chinese firms to advance in the AI race [11][12]. Group 4: Future Technologies - Huang expressed optimism about the future of robotics and autonomous vehicles, predicting that this decade will be pivotal for these technologies [13][14]. - He also mentioned that quantum computing is reaching an "inflection point," with the potential to solve complex problems beyond the capabilities of classical computers [15].

Core Insights - NVIDIA Corporation is showcasing its leadership in the AI market and the growing opportunities for sovereign AI at GTC Paris, according to an analyst note from JPMorgan [1][2] - The analyst maintains an Overweight rating on NVIDIA with a price target of $170, highlighting strong AI infrastructure deployment expected over the next several years [1][4] Group 1: AI Market Leadership - NVIDIA's keynote at GTC Paris emphasized the sovereign AI opportunities in Europe and the accelerating demand for its platforms and software solutions [2] - The company is positioned as a "one-stop solution provider" in the AI space, with sovereign AI representing an incremental revenue opportunity as countries develop their AI infrastructure [2][3] Group 2: Market Opportunities - NVIDIA anticipates building out $1.5 trillion worth of AI infrastructure in the coming years, which is additional spending beyond the U.S. cloud and hyperscaler sectors [2] - The European market is currently underserved, but investments are increasing, with NVIDIA partnering with European companies in telecommunications, cloud, and neo-cloud sectors to enhance AI expansion [3] Group 3: Business Segments and Growth - NVIDIA is expected to execute effectively across all business segments, with strong growth anticipated in the second half of the year [4] - The stock price of NVIDIA has increased by 0.9% to $144.69, with a year-to-date increase of 4.6% in 2025 [4]

Core Insights - Nvidia is positioning itself as a key player in the global AI infrastructure landscape through partnerships with European countries and companies [1][5] - The company aims to enhance AI computing capacity in Europe by a factor of 10 over the next two years, amidst challenges from U.S. export restrictions [5] Partnerships and Projects - Nvidia announced a partnership with French startup Mistral to create an "AI cloud" utilizing 18,000 Nvidia Grace Blackwell chips [6] - Infrastructure projects are also being developed in Italy and Armenia [6] - Collaborations with telecommunications companies like Orange and Telefonica focus on deploying AI applications and large language models [7] Infrastructure Development - Nvidia is building an "industrial cloud" in Germany featuring 10,000 GPUs tailored for European manufacturers [7] - The concept of "sovereign AI" emphasizes the importance of regional data centers and servers for EU users [8] - Nvidia is establishing "tech centers" across Europe to promote advanced research and workforce upskilling in countries such as the U.K., France, Spain, and Germany [8] Product Expansion - The company expanded its DGX Cloud Lepton product, integrating it with AI model repository Hugging Face, allowing global access to GPUs for AI applications [9]

Core Insights - NVIDIA is collaborating with model builders and cloud providers in Europe and the Middle East to enhance sovereign large language models (LLMs), aiming to boost enterprise AI adoption across various industries in the region [1][5][16] Group 1: Partnerships and Collaborations - Key partnerships include organizations such as Barcelona Supercomputing Center, Bielik.AI, Dicta, and several universities, which will utilize NVIDIA's Nemotron techniques to improve model efficiency and accuracy for enterprise AI workloads [2][6][16] - The collaboration aims to create an integrated regional AI ecosystem that reflects local languages and cultures, supporting Europe's 24 official languages [6][16] Group 2: Technology and Infrastructure - The LLMs will be optimized using NVIDIA's Nemotron model-building techniques, which include neural architecture search and reinforcement learning, to enhance operational efficiency and user experience [7][16] - Post-training and inference will be conducted on AI infrastructure provided by NVIDIA Cloud Partners, ensuring localized support for the models [3][7] Group 3: Application and Impact - The sovereign models will be integrated into Perplexity, an AI-powered answer engine that processes over 150 million questions weekly, enhancing the accuracy of search queries and AI outputs for European enterprises [4][9][10] - The initiative is expected to empower innovation in Europe by providing AI solutions that are developed and operated locally, thereby transforming various industries [5][10]

Summary of NVIDIA (NVDA) 2025 Conference Company Overview - **Company**: NVIDIA (NVDA) - **Event**: 2025 Nasdaq Investor Conference - **Date**: June 10, 2025 - **Key Speaker**: Colette Kress, CFO of NVIDIA Industry Insights - **Industry**: Technology, specifically focusing on AI, semiconductors, and data centers - **Market Performance**: Nasdaq has outperformed broader market indices over the past five years, highlighting the strength of technology and biotech sectors [2][3] Core Points and Arguments 1. **Sovereign AI as a Growth Driver**: Sovereign AI is identified as a significant future growth driver, with potential for countries to develop their own AI capabilities tailored to local needs [11][19] 2. **Investment in UK Infrastructure**: NVIDIA is collaborating with the UK government to build AI infrastructure, emphasizing the importance of local talent and startups [15][16] 3. **Global AI Demand**: The demand for AI solutions is rapidly increasing globally, with countries recognizing the need for localized AI capabilities [18][20] 4. **Market Size Projections**: Sovereign AI could represent a market opportunity approaching $1 trillion over several years, with tens of billions expected to surface soon [20] 5. **China Market Dynamics**: The Chinese market is projected to be worth $50 billion, but NVIDIA faces challenges due to U.S. government restrictions on shipping certain products [32][36] 6. **Supply Chain Improvements**: NVIDIA has improved its supply chain, shipping 1,000 racks per customer per week, indicating a recovery from previous constraints [38][40] 7. **Networking Business Growth**: NVIDIA's networking segment is performing well, with a 64% increase in revenue, driven by the integration of AI workloads [49][51] 8. **Gaming Sector Performance**: The gaming segment reached record levels despite supply constraints, indicating strong demand and potential for future growth [54][55] Additional Important Content - **AI Applications**: The conference highlighted various applications of AI across industries, including enterprise software, automotive, and robotics, indicating a broad scope for future growth [58][61] - **Agentic Models**: The emergence of agentic models, which automate tasks and improve efficiency, is a key focus for NVIDIA's future developments [29][59] - **Gross Margin Guidance**: NVIDIA is targeting gross margins in the mid-70s by the end of the year, supported by increased volume and improved yield from the Blackwell architecture [52][53] This summary encapsulates the key insights and projections discussed during the NVIDIA conference, emphasizing the company's strategic focus on AI and its implications for future growth across various sectors.

Company Overview May 2025 Certain matters in this presentation including, but not limited to, statements as to: expectations with respect to growth, performance and benefits of NVIDIA's products, services, and technologies, including Blackwell, and related trends and drivers; expectations with respect to supply and demand for NVIDIA's products, services, and technologies, including Blackwell, and related matters including inventory, production and distribution; our financial position; projected market growt ...

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **AI infrastructure industry**, particularly focusing on partnerships between the **US** and the **Middle East** that are expected to benefit companies involved in AI infrastructure such as **DELL**, **ANET**, **SMCI**, and **CSCO** [2][10]. Core Insights and Arguments - **Partnership Announcements**: Recent partnerships worth several billion dollars between the US and Middle Eastern countries have been announced, enhancing visibility into the demand for Sovereign AI infrastructure, which had previously been underestimated due to lack of traction [2][10]. - **Investment Opportunities**: The US is set to receive significant investments from Saudi Arabia, including **$600 billion** announced on May 13th, which includes **$20 billion** for data center and energy infrastructure by **DataVolt** and **$80 billion** in technology investments across various companies [5][9]. - **AI Diffusion Rule Changes**: The US Department of Commerce rescinded the AI Diffusion rule, which would have imposed chip export restrictions, indicating a shift in regulatory landscape that could impact AI technology distribution [5][10]. - **NVIDIA's Export Agreement**: The US and UAE have agreed on a deal allowing **NVIDIA** to export **500,000 H100 GPUs** annually to the UAE, with **100,000 GPUs** allocated to **G42** for AI weather forecasting solutions [5][6]. Important Partnerships and Deals - **DataVolt and SMCI**: DataVolt announced a **$20 billion** deal with **Super Micro** to deliver GPU platforms for AI campuses in Saudi Arabia and the US [9][10]. - **Cisco Collaborations**: Cisco has entered into agreements with **G42** and **HUMAIN** to enhance AI infrastructure and explore cybersecurity solutions [9][10]. - **NVIDIA and HUMAIN Partnership**: NVIDIA will collaborate with HUMAIN to build AI factories in Saudi Arabia, deploying significant data center capacity supported by NVIDIA GPUs [9][10]. Market Sentiment and Future Outlook - The recent announcements are expected to improve investor sentiment towards AI infrastructure, especially following a series of negative headlines in the sector [2][10]. - The diversification of customer demand for AI infrastructure beyond US neo-clouds is highlighted, with companies like **SMCI** expanding their customer base [10][14]. - US hyperscalers such as **Google**, **Microsoft**, and **Oracle** are also participating in Middle Eastern investments, indicating a robust future demand for AI servers in the region [10][14]. Potential Risks - There are concerns regarding potential security risks associated with the KSA+UAE/US AI partnership, particularly regarding GPU diversion to China and unauthorized model use. However, these risks are expected to be mitigated by the operational control of US hyperscalers [14][10]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future prospects of the AI infrastructure industry, particularly in the context of US-Middle East partnerships.