TLDR
- Nvidia stock gained 0.7% in premarket trading Monday following CEO Jensen Huang’s European tour last week
- European leaders embraced Huang’s “sovereign AI” vision, with each country building its own AI infrastructure
- Oppenheimer estimates sovereign AI represents a $1.5 trillion market opportunity, with Europe accounting for $120 billion
- Citi analyst Atif Malik maintains Buy rating with $180 price target, citing Europe’s AI infrastructure commitments
- Major European partnerships announced include 18,000 Blackwell GPUs for France and 14,000 for the UK
Nvidia shares climbed in early Monday trading as investors digested the chipmaker’s European expansion plans. The stock rose 0.7% to $142.99 in premarket activity after falling 2.1% Friday.
CEO Jensen Huang’s tour of Europe last week generated considerable buzz on Wall Street. European leaders showed strong interest in his “sovereign AI” concept, where individual countries develop their own artificial intelligence infrastructure.
The Paris GTC event revealed multiple government partnerships across France, Germany, Italy, Spain, and the UK. These collaborations focus on building sovereign AI systems tailored to each nation’s needs.
🚨 NVIDIA just showed what the future of AI looks like at GTC Paris
Here’s the top 7 wildest stuff they announced 👇
1/ NVIDIA’s new NVL72 system connects 72 Blackwell GPUs with 130 TB/s bandwidth pic.twitter.com/oC8HnTEcOh
— Devin AI News and Tools (@toolandtea) June 13, 2025
Major European Deployments Taking Shape
Germany will host Europe’s first industrial AI cloud designed for manufacturing. The facility uses NVIDIA DGX B200 systems and RTX PRO Servers powered by 10,000 Blackwell GPUs.
France secured a major GPU deployment partnership with Mistral AI. The project involves installing 18,000 Blackwell GPUs near Paris to support local AI development.
The UK announced its first AI infrastructure rollout stage through NVIDIA Cloud Partners. This deployment includes 14,000 Blackwell GPUs across new enterprise data centers throughout the country.
The European Union plans to invest €30 billion in AI factories overall. This includes five gigafactories, each equipped with 100,000 AI accelerators.
Nvidia estimates roughly $1.5 trillion will be invested globally in sovereign AI factories over the next several years. This represents a massive market opportunity for the company’s hardware and software solutions.
Analyst Optimism Runs High
Oppenheimer analyst Rick Schafer sees sovereign AI as a $1.5 trillion total addressable market. He estimates Europe’s share at approximately $120 billion of this opportunity.
Schafer expects multi-gigawatt data centers by 2028. A single gigawatt facility could generate up to $50 billion in revenue for Nvidia, according to his calculations.
The analyst maintained his Outperform rating and $175 price target. He cited Nvidia’s leadership position in AI hardware and software solutions as key advantages.
Citi analyst Atif Malik, ranked among Wall Street’s top 15, issued a Buy rating with a $180 price target. This implies potential upside of 26% from current levels.
Malik highlighted three key takeaways from the European developments. First, Europe appears committed to importing advanced AI accelerators without major trade disruptions.
Second, while the EU plans to deploy over 750,000 AI accelerators, this still trails Middle Eastern ambitions. The UAE alone targets 500,000 units annually with stronger capital and energy access.
Third, the sovereign AI surge clearly benefits Nvidia since these systems rely heavily on merchant GPUs. The company’s positioning makes it the natural choice for many deployments.
Wall Street consensus strongly favors Nvidia stock. Of 40 analysts covering the company, 35 rate it a Buy, 4 Hold, and just 1 Sell.
The average price target of $172.36 suggests 21% upside potential over the next year. This reflects confidence in Nvidia’s AI infrastructure opportunities.
European governments continue finalizing their sovereign AI strategies. The collective €30 billion investment represents just the beginning of a multi-year buildout phase across the continent.
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