Nvidia (NVDA) just secured another big victory in the global AI race. Following Saudi Arabia’s recent push into AI chip investments, Bank of America (BofA) has labelled the chip giant a “top winner,” highlighting the strategic advantage this deal brings to the company. NVDA stock has surged almost 15% over the past five trading days.
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For context, Nvidia has partnered with Humain, an AI firm backed by Saudi Arabia’s Public Investment Fund, to supply chips for a major data center project. The partnership was announced during President Trump’s visit to Saudi Arabia, where he secured $600 billion in business commitments from the region. Alongside Nvidia, BofA also named Advanced Micro Devices (AMD) a key beneficiary of Saudi Arabia’s latest AI infrastructure investments.
BofA Raises Price Target on NVDA Stock
Following the deal, the BofA team, led by five-star-rated analyst Vivek Arya, raised the price target on NVDA stock from $150 to $160, predicting an upside of 18.2%.
Arya believes the Saudi AI deals with Nvidia and AMD could generate $3 to $5 billion annually, potentially totaling $15 to $20 billion over the full term. Notably, Humain is making huge investments in building AI centers in Saudi Arabia. These centers will use a lot of electricity, up to 500 megawatts, and will have hundreds of thousands of Nvidia’s most powerful GPUs working over the next five years. As part of these global AI projects, Nvidia is expected to receive about $7 billion in direct deals. In the first phase alone, around 18,000 of Nvidia’s advanced Blackwell GPUs, valued at about $700 million, will be included.
This influx could help balance out the revenue losses Nvidia faces due to U.S. export restrictions on selling advanced chips to China and other restricted countries.
Looking ahead, Bank of America sees a massive opportunity for Nvidia in global AI infrastructure, estimating it could be worth as much as $500 billion in the long run.
Is Nvidia a Good Stock to Buy Right Now?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, five Holds, and one Sell assigned in the last three months. At $164.51, the Nvidia stock price target implies a 21.5% upside potential.
