Nvidia and AMD Emerge as Key Winners in Saudi AI Deals
Bank of America analysts identified Nvidia (NVDA.US) and AMD (AMD.US) as the “primary beneficiaries” of Saudi Arabia’s recent artificial intelligence (AI) agreements. However, Broadcom (AVGO.US) and Marvell Technology (MRVL.US) are also expected to gain from these deals.
Major AI Chip Sales to Saudi Arabia
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On May 13, Nvidia and AMD announced separate AI-related agreements with Saudi Arabia. Nvidia revealed plans to sell hundreds of thousands of AI chips to the country. The first batch of 18,000 next-generation Blackwell chips will go to Humain, an AI startup recently established by Saudi Arabia’s sovereign wealth fund.
In a joint statement, Nvidia and Humain confirmed a five-year plan to build AI data centers with a capacity of up to 500 megawatts. Meanwhile, AMD disclosed a $10 billion partnership with Humain. Beyond hardware procurement, this deal includes collaboration on next-generation AI cloud computing platforms.
Broader Benefits for Semiconductor Ecosystem
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A Bank of America research team, led by Vivek Arya, noted that while Nvidia and AMD stand out as the biggest winners, other companies could also benefit. The report highlighted Broadcom and Marvell’s role in networking solutions, along with potential gains for optical, memory, and semiconductor equipment suppliers.
Arya raised Nvidia’s price target from 150 to 160 and AMD’s from 120 to 130. The analysts described AMD’s involvement as a “significant win,” even though its deal operates through a joint venture rather than direct contracts like Nvidia’s.
Continued Optimism for AI Growth
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Bank of America maintained “Buy” ratings for Nvidia, AMD, Broadcom, and Marvell. The firm believes these companies will see long-term benefits from expanding AI opportunities.
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