Nvidia expands into Europe with sovereign AI, partnering with Deutsche Telekom

From Yahoo Finance: 2025-06-19 09:00:00

Nvidia’s CEO, Jensen Huang, advocates for “sovereign AI,” sparking interest in Europe. The company partners with Deutsche Telekom to introduce AI-powered industrial cloud in Germany, with plans to expand across Europe. Nvidia’s role in sovereign AI development and its recent European expansion are worth investors’ attention.

Despite a slight slowdown in growth, Nvidia remains a powerhouse in AI and GPU technology, driving advancements in gaming, data centers, autonomous vehicles, and more. The company’s $3.5 trillion market cap reflects its value, but geopolitical challenges and new competitors have impacted investor sentiment.

Nvidia’s stock, trading at 35.4 times forward earnings, is pricier than sector norms but more reasonable than before. The company’s recent fiscal performance exceeded expectations, with revenue up 69% annually driven by strong data center and gaming segments. Nvidia faces challenges from U.S.-China trade restrictions affecting its chip sales.

Wall Street maintains a “Strong Buy” consensus on Nvidia, anticipating a potential 23% upside in stock price. The company’s strategic expansion into Europe amidst China export restrictions presents new growth opportunities. Nvidia’s solid fundamentals and backing from analysts make it a compelling investment in the evolving AI landscape.

Read more: Nvidia’s Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here?