During Donald Trump’s visit to the Middle East, Advanced Micro Devices (AMD) secured a strategic deal that could significantly impact its future growth. The company is now one of the biggest beneficiaries of the investments made during this visit, including a major partnership with the Saudi startup Humain, supported by the Saudi Public Investment Fund (PIF).
Strategic Partnership with Humain and Investment in Artificial Intelligence
The agreement between AMD and Humain focuses on developing advanced hardware infrastructure for artificial intelligence (AI) and deploying it in Saudi Arabia. The deal is valued at $10 billion and will involve the deployment of 500 megawatts of AI hardware over the next five years. AMD has committed to providing thousands of next-generation chips to support Humain’s goal of establishing Saudi Arabia as a global AI hub.
Positive Outlook for AMD Due to the New Deal
This deal has attracted attention from analysts, who have upgraded their recommendation for AMD’s stock to "hold," considering the potential growth the partnership could bring. Analysts from HSBC Global Research and Rosenblatt Securities expressed optimism about AMD’s ability to compete with its rivals, including Nvidia, which also has a deal with Humain.
Export Restrictions to China as a Challenge for AMD and Nvidia
Despite the optimism surrounding these new deals, both AMD and Nvidia face challenges related to U.S. export controls, which limit the sale of advanced AI chips to China. AMD expects a revenue loss of $1.5 billion in 2025 due to these restrictions, while Nvidia has seen a $5.5 billion revenue decrease related to its exports to China.
Nvidia and AMD Benefit from the Middle East
Despite these challenges, both tech giants are benefiting from the growing interest in AI in Saudi Arabia. Like AMD, Nvidia also announced a strategic partnership with Humain, which led to a significant 5.6% increase in Nvidia’s stock price. These partnerships in Saudi Arabia are allowing both companies to overcome some of the barriers preventing growth in other markets.
Saudi Arabia as a New Technological Powerhouse
These partnerships are part of Saudi Arabia’s broader effort to diversify its economy and transform itself into a hub for AI innovation. The Saudi government is focusing on reducing its dependence on oil revenues and attracting investment into new technological fields such as AI, which is positively impacting American tech companies.
Looking Ahead: AMD and Nvidia on the Rise
The deals AMD and Nvidia secured during Trump’s visit to Saudi Arabia represent a significant step forward for both companies. With growing interest in AI and Saudi Arabia’s plans for technological development, these partnerships could be key to their growth in the coming years.
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