Bank of America sees more room for Nvidia and Advanced Micro Devices shares to run after the technology companies inked deals with a subsidiary of the Saudi Arabia Public Investment Fund. Analyst Vivek Arya lifted his Nvidia price target by $10 to $160, which now implies 23.1% upside over Tuesday’s close. Arya also added $10 to his price target for AMD, with the refreshed $130 estimate suggesting shares can jump 15.6%. The analyst cited the companies each announcing multiyear projects tied to artificial intelligence infrastructure with a Saudi subsidiary called Humain. Bank of America predicts these projects to cost between $3 billion to $5 billion annually, which equates to a range of $15 billion to $20 billion across multiple years. “Sovereign AI nicely complements commercial cloud investments with a focus on training and inference of LLMs in local culture, language and needs,” Arya told clients. Arya also noted that Sovereign AI can help with limited power availability for data centers in the U.S. Both Nvidia and AMD rose more than 2% in Wednesday’s premarket trading. These deals come as President Donald Trump’s team has courted the Middle Eastern country. The White House on Tuesday announced Saudi Arabia’s commitment to invest $600 billion through several business agreements with the U.S. Trump spoke at an investment conference in the country and met with Saudi Crown Prince Mohammed bin Salman. Several tech CEOs including Nvidia’s Jensen Huang, who announced a deal to sell the kingdom more than 18,000 of its Blackwell AI chips , also attended the investment forum.
