Nvidia shares are recovering on Monday after dropping 7.7% over the last five sessions and falling below the $200 support level for the first time since April. The stock rose 1.4% to $195.22 in early trading, helped by news of a major data center deal, indicating demand for Nvidia’s chips remains strong despite the recent sector downturn. Here’s what the deal includes and what it means for AI infrastructure growth outside the U.S.
Australian company Firmus has agreed to an eight-year partnership with Nvidia to build a 360-megawatt AI facility in Batam, an Indonesian island close to Singapore. The deal covers the purchase of up to 170,000 Nvidia GPUs in 2027 and 2028. Firmus will offer cloud services powered by Nvidia, and Nvidia will earn both regular product revenue and a share of the cloud revenue from the facility.
This deal is financially significant. Firmus expects to generate $25 billion to $30 billion in revenue from customer agreements over the first six years. In April, Firmus raised $505 million in strategic equity investment, led by Coatue and with Nvidia also investing.
The Batam facility is further proof that demand for AI infrastructure is spreading beyond the U.S. to Southeast Asia and other regions where data center construction is picking up. For Nvidia, large deals in emerging markets help diversify its revenue and reduce its reliance on a few big U.S. customers for growth.
The stock remains down approximately 14%. Nvidia’s stock is still about 14% below the $226 mark, where it was considered undervalued earlier this year.
