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Nvidia’s Sovereign AI Growth Surges
Nvidia Corporation (NASDAQ: NVDA) is projected to achieve over $20 billion in sovereign AI revenue for the fiscal year 2026, more than double from the previous year. This growth is driven by sovereign entities, including countries and states, building their own AI infrastructures using Nvidia’s technology. The company reported that its sovereign AI business is becoming a significant growth engine within its overall data center platform, which is expected to generate total revenue of $206.5 billion this fiscal year, marking a 58% increase from $130.5 billion last year.
As part of its strategy, Nvidia is helping nations, including those in Europe and Asia, establish AI factories and required infrastructure. The European Union plans to invest 20 billion euros in 20 AI factories across France, Germany, Italy, and Spain to enhance its AI compute infrastructure tenfold. Nvidia’s GPUs will play a crucial role in this expansion.
For context, Nvidia’s data center revenue in the first half of fiscal 2026 was reported at $80.2 billion, up 64% year-over-year. The sovereign AI segment likely contributed approximately $8 billion during this period.
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