Nvidia Surges as Saudi AI Deals Rewrite Its Total Addressable Market

Moz Farooque

Wed, May 14, 2025, 11:23 AM 2 min read

Nvidia (NASDAQ:NVDA) jumps connected Saudi AI blitz arsenic Wedbush dubs it a bullish eye-opener.

Wedbush Securities highlighted that yesterday's slate of AI-focused agreements betwixt U.S. tech leaders and Saudi Arabia including Nvidia, Amazon (NASDAQ:AMZN), AMD (NASDAQ:AMD) and Cisco (NASDAQ:CSCO) underscores Riyadh's intent to go a top-tier purchaser of AI chips, software, robotics and datacenter infrastructure implicit the adjacent decade. Shares of Nvidia surged 5.6% connected May 14 arsenic investors digested the standard of the opportunity.

• Warning! GuruFocus has detected 3 Warning Signs with NVDA.

Wedbush sees this question of deals arsenic a immense accidental that could yet tack an incremental $1 trillion onto the planetary AI market, a fig it believes is not yet priced into tech stocks.

The taxable was wide successful Riyadhthe AI Revolution is coming to the Saudi Kingdom and Riyadh volition beryllium a large purchaser of AI chips, software, autonomous/robotics, and datacenters implicit the adjacent decade, the steadfast wrote successful a lawsuit note, framing the Middle East arsenic the adjacent frontier for hyperscalers and semiconductor makers.

Analysts besides pointed retired that, portion U.S.-China tensions person eased recently, Chinese firms inactive deficiency entree to the latest AI accelerators, giving Saudi Arabia an aboriginal mover vantage connected Nvidia's cutting-edge GPUs. Wedbush expects follow-on deals from hyperscalers, Palantir (NASDAQ:PLTR), Tesla (NASDAQ:TSLA) and others, forecasting that this archetypal circular of agreements is conscionable the opening act.

Why It Matters: Tech investors should attraction due to the fact that this Saudi propulsion could materially grow full addressable markets for AI hardware and software, perchance boosting revenues and valuations for chipmakers and unreality players. Investors volition support an oculus connected adjacent quarter's guidance updates to gauge whether this Saudi-driven request communicative is already rippling done tech earnings.

This nonfiction archetypal appeared connected GuruFocus.