Source: Zhitong Finance.
Bank of America stated that,$NVIDIA (NVDA.US)$、 $Advanced Micro Devices (AMD.US)$ it is the "biggest beneficiary" of Saudi AI Trade, but $Broadcom (AVGO.US)$and$Marvell Technology (MRVL.US)$It will also benefit.
On May 13 local time, NVIDIA and AMD announced that they had reached AI trade agreements with Saudi Arabia. NVIDIA stated that it will sell hundreds of thousands of AI chips to Saudi Arabia, with the first batch of 0.018 million of the latest Blackwell chips to be sold to the newly established AI startup Humain funded by the Saudi sovereign wealth fund. NVIDIA and Humain said in a joint statement 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 stated that the deal with Humain involves not only hardware procurement but also cooperation on the next-generation AI Cloud Computing platform.
The team of analysts 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 the AI Trades in Saudi Arabia. However, we also emphasize the complementary nature of Broadcom and Marvell Technology in the field of network connectivity, as well as the potential benefits in optics, memory, semiconductor equipment, and the foundry ecosystem."
In the report, Vivek Arya raised the Target Price for NVIDIA and AMD from $150 and $120 to $160 and $130, respectively. The Analyst stated that although NVIDIA has directly secured the contract while AMD is participating through a joint venture, this is still a "significant victory" for AMD.
Bank of America reiterated its "Buy" rating for NVIDIA, AMD, Broadcom, and Marvell Technology and stated that it believes AI opportunities will bring long-term benefits to these companies.
Editor/jayden