Can NVIDIA’s (NVDA) New Indonesia AI Campus Deal Unlock $30 Billion for a Partner?

NVIDIA Corporation (NASDAQ:NVDA) is one of the best stocks to invest in according to Two Sigma Advisors with huge upside potential. On June 28, Firmus Technologies, an Australian AI infrastructure startup, announced an eight-year strategic partnership with NVIDIA Corporation (NASDAQ:NVDA) under which Firmus will purchase NVIDIA hardware and sell NVIDIA-powered cloud services to AI companies.

Can NVIDIA’s (NVDA) New Indonesia AI Campus Deal Unlock $30 Billion for a Partner?

allstars/Shutterstock.com

The core of the deal is a 360-megawatt Nvidia DSX AI Factory campus to be built on Batam Island, Indonesia. The island is a strategic location just off the coast of Singapore, and the campus will be co-developed with Singapore-based digital infrastructure firm DayOne. In fact, according to Firmus, the campus is already under construction.

The agreement covers up to 170,000 NVIDIA AI accelerator chips to be delivered between Q1 2027 and early 2028. Firmus will access the infrastructure through a revenue-sharing and credit support arrangement with NVIDIA. Firmus projects the deal will yield between $25 billion and $30 billion in revenue over the first six years, and that the yield is backed by committed customer off-take agreements.

According to Firmus, the core aim of the partnership is to close a cost and access gap in the AI industry. That is, large tech companies with strong credit ratings and scale advantages have long been able to procure AI infrastructure cheaply, while smaller and fast-growing AI startups cannot. As such, the deal will change that by giving those emerging players affordable access to the same high-performance computing.

NVIDIA Corporation (NASDAQ:NVDA) is a technology company. It designs graphics processing units and AI computing platforms for data centers, gaming, professional visualization, and automotive markets.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Billionaire Cliff Asness’ Top 10 Healthcare Stock Picks and 10 Best Stocks to Buy Now for Good Returns.

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1