Nvidia (NVDA) shares slipped 0.18% on Friday, a modest decline that belied a flurry of positive developments underscoring the chipmaker's expanding global AI footprint. The company is reportedly opening orders in China for its new Vera central processing units, with shipments potentially beginning in August, according to Reuters. One major Chinese cloud provider is preparing an initial order for more than 300 servers built around the Vera chips, with testing expected in overseas data centers before larger deployments.
Nvidia sees Vera as a potential $20 billion revenue opportunity by the end of its fiscal year in January. Unlike its graphics processing units, which face tighter U.S. export restrictions, the processor business may encounter fewer regulatory hurdles, offering a strategic avenue into the Chinese market.
Global AI Infrastructure Deals
Beyond China, Nvidia continues to broaden its reach through major AI infrastructure agreements. Australian cloud provider SharonAI Holdings announced a six-year partnership to build 72 megawatts of new data-center capacity across Australia, deploying up to 40,000 Nvidia AI processors. Nvidia will receive revenue from processor sales and a share of cloud revenue from SharonAI's hosting services.
Nebius Group plans to invest approximately $2.275 billion in next-generation facilities in the United Kingdom powered by Nvidia's Vera Rubin products. Meanwhile, a partnership with SK Telecom aims to build AI-capable cloud infrastructure in South Korea focused on both AI training and inference workloads. CEO Jensen Huang has emphasized that inference is crucial to the outlook, as it represents a much larger market segment than infrastructure and training.
Analyst Sentiment and Supply Dynamics
Analysts remain confident in Nvidia's outlook following events like the Taiwan Computex conference. Wedbush and UBS believe demand for GPUs remains strong while supply capacity continues to lag, creating favorable conditions. Wedbush also suggested the AI hardware upgrade cycle may be accelerating as demand for Nvidia's Blackwell platform remains stronger than expected later in its product cycle. The company is covered by 54 analysts, with approximately 95% maintaining Buy recommendations.
For context on the broader AI-driven chip demand, see our coverage of Micron Surges 10% as Analysts Boost Targets on AI-Driven Memory Demand and Applied Materials, KLA Surge as Barclays Lifts Chip Equipment Forecast on AI Demand.
Supply Chain and Strategic Investments
Nvidia continues to invest in technologies to strengthen its long-term AI ecosystem. Its latest acquisition is Kumo AI, an enterprise-focused predictive agent platform that helps forecast operational needs using customer data. The technology is expected to complement Nvidia's broader physical AI strategy, including warehouse automation applications. The company is also investing heavily in future production capacity and supply-chain resilience, positioning itself to navigate potential shortages and meet rising AI demand.
This article is for informational purposes only and does not constitute financial advice.
