Nvidia Stock Rises 1.4% as Major Indonesia Data Center Deal Signals Demand Strength
Mondeum Capital (UK) Limited
Nvidia shares are recovering on Monday after dropping 7.7% over the last five sessions and falling below the $200 support level for the first time since April. The stock rose 1.4% to $195.22 in early trading, helped by news of a major data center deal, indicating demand for Nvidia’s chips remains strong despite the recent sector downturn. Here’s what the deal includes and what it means for AI infrastructure growth outside the U.S.
Australian company Firmus has agreed to an eight-year partnership with Nvidia to build a 360-megawatt AI facility in Batam, an Indonesian island close to Singapore. The deal covers the purchase of up to 170,000 Nvidia GPUs in 2027 and 2028. Firmus will offer cloud services powered by Nvidia, and Nvidia will earn both regular product revenue and a share of the cloud revenue from the facility.
This deal is financially significant. Firmus expects to generate $25 billion to $30 billion in revenue from customer agreements over the first six years. In April, Firmus raised $505 million in strategic equity investment, led by Coatue and with Nvidia also investing.
The Batam facility is further proof that demand for AI infrastructure is spreading beyond the U.S. to Southeast Asia and other regions where data center construction is picking up. For Nvidia, large deals in emerging markets help diversify its revenue and reduce its reliance on a few big U.S. customers for growth.
The stock remains down approximately 14%. Nvidia’s stock is still about 14% below the $226 mark, where it was considered undervalued earlier this year.
Featured Courses
Recent news
OpenAI Weighs 5% U.S. Government Stake Ahead of Blockbuster IPO
OpenAI has held discussions about offering the U.S. government a 5% ownership stake, potentially structured through a sovereign wealth fund, according to a Financial Times report citing people familiar with the matter. The ChatGPT maker did not immediately respond to a request for comment. The move would add Washington to an already formidable roster of […]
Tesla Deliveries Loom as Investors Bet on Second Straight Quarterly Gain
Tesla is poised to report second-quarter delivery figures Thursday morning, capping a period marked by geopolitical conflict, a spike in oil prices, and continued fallout from shifting U.S. electric-vehicle policy. The automaker’s shares have rallied sharply ahead of the report, a signal that investors anticipate a strong outcome. Even so, forecasts vary widely enough that […]
Nvidia Stock Trails Chip Peers in First Half as Competition Broadens
Nvidia shares rose 0.4% to $195.75 in premarket trading on Tuesday, ending a first half that trailed the broader semiconductor sector. The stock is up 4.5% for the year through Monday, much less than the PHLX Semiconductor Index’s 94% gain over the same period. Here’s a look at why Nvidia has underperformed and what investors […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.