Chipmaker Advanced Micro Devices (AMD), networking firm Cisco Systems (CSCO), and Saudi Arabian AI startup Humain are teaming up to build new data centers in the Middle East. Their joint venture, which is still unnamed, will start with a 100-megawatt data center in Saudi Arabia. Humain’s CEO, Tareq Amin, said that the full capacity has already been sold to Luma AI, a generative video startup. This is the first time the project’s size and the name of the first customer have been shared publicly.
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The partnership is one of several tech deals announced during President Donald Trump’s visit to Riyadh in May. In addition, more collaborations are expected as Trump meets with Saudi Crown Prince Mohammed bin Salman in Washington this week. Notably, Saudi Arabia’s sovereign wealth fund is backing Humain’s push to build more data centers. Moreover, AMD and Cisco will be minority owners in this new joint venture, while Humain will lead the project, according to AMD CEO Lisa Su.
The team’s long-term plan is to build up to one gigawatt of data center capacity by 2030 to serve regions including Asia, Europe, India, the Middle East, and Africa. This will reach about 4.5 billion people. The first stage, set for 2026, will use renewable energy. Interestingly, AMD will supply its MI450 AI chips, while Cisco will provide networking equipment and use its sales team to help sell the center’s capacity. Construction hasn’t started yet, but Amin noted that purchase orders are already coming in for future data center builds.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 27 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $281.78 per share implies 26.9% upside potential.
