Bouva says artificial intelligence chips are the new “world currency” because they are the geopolitical negotiation wheels.
- Analysts at Bank of America are optimistic On chips like NVIDIA as huge projects in the Middle East highlighting long -term demand for artificial intelligence computing. For stocks, the issue also enhances the emergence of artificial intelligence chips as the new “world currency”, which works as a currency in geopolitical conversations.
Artificial intelligence chips, such as graphics processing units that are essential for NVIDIA’s success, have become very important in the world, and they are like a form of currency in geopolitical conversations on trade, according to analysts in the American America.
This also indicates the last reliability of Mega to the continued demand for artificial intelligence computing power. On Tuesday note, Bofa estimated that NVIDIA and AMD infrastructure projects with Humain, a subsidiary of the Public Investment Fund in the Kingdom of Saudi Arabia, will reach $ 3 billion-5 billion dollars annually, or 15 billion dollars -20 billion dollars over a multi-year period.
Human will happen 18,000 advanced Blacks chips From Nvidia, while AMD signed a close competitor to NVIDIA in AI’s accelerators, 10 billion dollars in cooperation With Humain to save 500 megawatts of the ability to calculate the artificial intelligence of its data centers.
Bofa said that “Soovereign Ai” can represent more than $ 50 billion annually a total of $ 450 billion-500 billion dollars in the global infrastructure market worldwide.
Analysts added: “Sovereign artificial intelligence can also help in treating limited energy availability for data centers in the United States, as well as the opposite winds to displace the restrictions imposed on American companies to ship to China.”
NVIDIA and AMD are preparing to be the largest winners of the Saudi project, according to Bofa, who has repeated the purchase assessments of those shares and raised their price goals to $ 160 from $ 150 and $ 130 from $ 120, respectively.
The note said that the Chip Stocks Broadcom and Marvel technology will also benefit from the firm visual connection provider, which also has repeated purchase categories on these as well.
“Although we are more crowded, we believe that these sellers are subjected to the humble/secular demand for artificial intelligence spread by good financing: 1) Easter/cloud customers (CY25 Capex now follows +44 % YOY versus 7 % YOY at the same point last year), 2) clarifying a recent recent spread, and 3). (GPU as the “new” world “, said Bofa.
In fact, Nvidia is seen as a The bargaining segment in the trade talks between the United States and China As both sides seek to reduce barriers while maintaining their technological advantages.
Meanwhile, the Humain deal with NVIDIA is not the next steps in Trump’s efforts to prepare for the countries of the Middle East, but also raises the role of NVIDIA in developing global artificial intelligence. Thousands of semiconductor chips that Humain will receive is the latest and strongest NVIDIA, which was only presented in March.
While artificial intelligence in the United States such as Alphabet and Amazon will remain a priority for NVIDIA, Saudi Arabia will get preferential treatment for other countries. wealth Sasha Rogerberg this week.
“This puts them at the front of the line,” he said. “It is the start of the red carpet. It is an area that can eventually add a trillion dollars to the market opportunity for Amnesty International over the next decade.”
“With China is still a weak situation, I think it is a watershed moment,” he added.
This story was originally shown on Fortune.com
