Wedbush optimistic forecast: Middle East AI transactions release positive signals, US tech stocks welcome significant benefits
Wedbush Securities stated that the number of artificial intelligence agreements signed between American technology companies and Saudi Arabia has surged, indicating that more similar deals are expected in the future. Analysts believe that Saudi Arabia will become a major buyer of artificial intelligence products in the next decade, potentially driving an increase of $1 trillion in the global artificial intelligence market size. Although the market has reacted positively to the easing of the US-China trade war, Saudi Arabia has an advantage in acquiring the latest AI accelerators, and larger-scale AI transactions are expected to emerge
According to Zhitong Finance APP, Wedbush Securities stated that the number of agreements focused on artificial intelligence (AI) signed between American technology companies and Saudi Arabia yesterday is a bullish signal that has caught investors' attention, indicating that more similar agreements will be reached in the future.
Wedbush analysts said, "The theme in Riyadh is clear... The AI revolution is about to sweep the Kingdom of Saudi Arabia, and Riyadh will become a major buyer of AI chips, software, autonomous/robotics, and data centers in the next decade."
They view these deals— including agreements signed by NVIDIA (NVDA.US), Amazon (AMZN.US), AMD (AMD.US), Cisco (CSCO.US), and others— as a "huge opportunity" to expand the potential market for all AI products.
The analysts explained, "We believe that the market opportunity in Saudi Arabia could expand the global AI market size by another $1 trillion in the coming years, and we think this dynamic has yet to be digested by the market and technology companies."
The analysts noted that while the market may have reacted positively to the easing of the trade war between the U.S. and China, China still cannot access the latest AI accelerators, whereas Saudi Arabia can, especially NVIDIA's accelerators.
The analysts stated, "This is just the beginning, as large tech companies like Palantir (PLTR.US) and Tesla (TSLA.US) see game-changing AI market opportunities in the Middle East, and we expect larger-scale AI deals to emerge soon."
