Nvidia Partners With Vietnam Government To Develop Advanced AI And More

On Thursday, Nvidia Corp NVDA founder and chief Jensen Huang agreed to jointly open an artificial intelligence research and development center with the Vietnamese government under a new deal.

Nvidia client Viettel Group data center will also join the initiative to develop advanced AI in the country, Bloomberg cites Vietnam’s Investment Minister Nguyen Chi Dung in Hanoi on Thursday.

Nvidia agreed to snap Vingroup JSC’s AI unit VinBrain, which Huang considers the starting point of a major future design center. VinBrain is a healthcare startup.

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Separately, Huang met with Thailand’s Prime Minister Paetongtarn Shinawatra on Tuesday and agreed to help develop the country’s AI infrastructure, reflecting Southeast Asia’s AI push as countries focus on consolidating their semiconductor supply chain to reduce dependence on China.

According to Bloomberg, Vietnam is eying an annual revenue of over $100 billion from the semiconductor industry by 2050. The government targets three big data centers and three AI centers by 2030.

During Huang’s first visit to Vietnam in 2023, he expressed his desire to collaborate with top tech firms there. The chip designer had committed $250 million in the country via partnership with leading tech companies to deploy AI in the cloud, automotive, and healthcare industries.

Vietnam allows foreign investors to own 100% of its data centers to attract companies like Amazon.Com Inc AMZN and Amazon Web Services.

Reportedly, Apple Inc AAPL supplier Hon Hai Precision Industry Co, better known as Foxconn, committed $80 million to the country for a chip plant after bagging approval to invest $383 million in another chip facility in Vietnam.

Nvidia stock gained over 200% year-to-date. JPMorgan analyst Harlan Sur, Oppenheimer analyst Rick Schafer, Goldman Sachs analyst Toshiya Hari, Piper Sandler analyst Harsh Kumar, Needham analyst Quinn Bolton, and Benchmark analyst Cody Acree flagged Nvidia as the ideal AI play backed by full-stack AI hardware/software, high-performance gaming, datacenter/AI and autonomous driving vehicles, demand for AI infrastructure across all customer groups, Blackwell ramping.

Price Action: NVDA stock is up 0.31% at $145.60 at last check on Thursday.

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