Bank of America: In addition to NVIDIA and AMD, Broadcom and Marvell Technology will also benefit from Saudi AI deals
Bank of America pointed out that NVIDIA and AMD are the main beneficiaries of Saudi Arabia's artificial intelligence transactions, with Broadcom and Marvell Technology also set to benefit. NVIDIA has reached an agreement to sell hundreds of thousands of AI chips to Saudi Arabia, while AMD has secured a $10 billion partnership with Humain. Analysts have raised the target prices for NVIDIA and AMD to $160 and $130, respectively, and reiterated a "buy" rating for all four companies, believing that artificial intelligence opportunities will bring long-term gains
According to the Zhitong Finance APP, Bank of America stated that NVIDIA (NVDA.US) and AMD (AMD.US) are the "biggest beneficiaries" of Saudi Arabia's artificial intelligence (AI) deals, but Broadcom (AVGO.US) and Marvell Technology (MRVL.US) will also benefit.
On May 13 local time, NVIDIA and AMD announced their respective AI deals with Saudi Arabia. NVIDIA stated that it will sell hundreds of thousands of AI chips in Saudi Arabia, with the first batch of 18,000 latest Blackwell chips being sold to the newly established AI startup Humain, backed by the Saudi sovereign wealth fund. In a joint statement, NVIDIA and Humain said that the two companies will build an AI factory with a capacity of up to 500 megawatts over the next five years. AMD also announced an agreement with Humain, stating that the two parties have reached a $10 billion collaboration. AMD indicated that the deal with Humain involves not only hardware procurement but also cooperation on next-generation AI cloud computing platforms.
The analyst team at Bank of America, led by Vivek Arya, wrote in a report to clients: "We believe that NVIDIA and AMD are likely to be the main beneficiaries of Saudi AI deals. However, we also want to emphasize the complementarity of Broadcom and Marvell Technology in the networking space, as well as the potential benefits in optics, memory, semiconductor equipment, and the foundry ecosystem."
In the report, Vivek Arya raised the target prices for NVIDIA and AMD from $150 and $120 to $160 and $130, respectively. The analysts stated that although NVIDIA directly secured the contracts, and AMD participated through joint ventures, this is still "an important victory" for AMD.
Bank of America reiterated its "buy" ratings on NVIDIA, AMD, Broadcom, and Marvell Technology, stating that it believes AI opportunities will bring long-term benefits to these companies
