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Bank of America says Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) stand to gain most from Saudi Arabia's recent AI infrastructure deals, according to a Wednesday note to clients.
Analysts led by Vivek Arya also highlighted that Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL) should benefit through complementary networking, optical, memory and foundry ecosystems.
While NVDA and AMD appear to be the primary awardees, we see similar 500?megawatt compute projects for both firms, Arya wrote. He noted that details remain scarce, but industry discussions support parallel deployments.
Arya raised his price targets on Nvidia to $160 from $150 and on AMD to $130 from $120, citing the strategic win for both companies,even as AMD's engagement takes the form of joint ventures while Nvidia secures direct awards.
The team reiterated Buy ratings on all four stocks, underlining that the Saudi AI push could deliver long?term upside across semiconductors and networking hardware.
Bank of America projects that the ripple effects from these massive compute commitments will extend beyond chipmakers, favoring suppliers involved in optical modules, memory wafers and semiconductor foundries.
This article first appeared on GuruFocus.