Nvidia, Amazon, Tesla, Palantir Among Top Beneficiaries Of $1 Trillion Saudi Arabia AI Push, Analyst Says

Tuesday was a bullish eye-opener for investors in U.S. tech stocks, as it’s becoming crystal clear that the AI Revolution has found its next major area of penetration: Saudi Arabia, Wedbush analyst Daniel Ives said.

Joining President Trump and his team of advisors on this key trip to the Middle East starting at the Saudi-U.S. Investment Forum he was joined by titans of the tech world including Nvidia Corp’s NVDA Godfather of AI Jensen, Elon Musk, Amazon.Com Inc’s AMZN Andy Jassy, Palantir Technologies Inc’s PLTR Alex Karp, Alphabet Inc’s GOOG GOOGL Ruth Porat, International Business Machines Corp’s IBM Arvind Krishna, OpenAI’s Sam Altman, Advanced Micro Devices, Inc’s AMD Lisa Su, among other prominent tech leaders.

The theme was clear in Riyadh: the AI Revolution is coming to the Saudi Kingdom, and Riyadh will be a major buyer of AI chips, software, autonomous robotics, and data centers over the next decade.

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Coming off a major US and China trade deal this weekend in Switzerland, which was a “dream scenario” for the markets and bullish tech investors, the tone in Riyadh has been about the bright green light on the massive AI buildout in Saudi, and this could open up a vast opportunity and TAM for Nvidia, Palantir, Microsoft Corp MSFT, Amazon, Alphabet, Tesla Inc TSLA and many other well-positioned chip/software names over the coming years.

Ives noted that the market opportunity in Saudi Arabia could add another $1 trillion to the broader global AI market in the coming years, and this dynamic is not being priced into the market and tech names.

Trump granted the Crown Prince’s new AI company, Humain (PIF AI subsidiary), a major strategic partnership with Nvidia in which Jensen & Co. will sell 18,000 next-generation Blackwell chips in the first deployment to power a Saudi supercomputer.

Over the next five years, Saudi Arabia will construct major data centers to train and deploy the Kingdom’s sovereign AI models.

This technology innovation is part of Saudi Arabia’s Vision 2030 initiative to move away from dependence and focus on technology and other strategic initiatives.

This is all part of a regional focus in the Middle East on building out data centers and the AI Revolution, which will start to vault UAE, Saudi, and Qatar to the priority list for U.S. tech companies. It also speaks to this global game of high-stakes poker being played by the Trump Administration, as while China is getting restrictions from Nvidia’s older H20 chip slowing down the AI buildout in Beijing, on the contrary, Ives noted Saudi getting the best Nvidia next-generation chips with a red carpet rollout from the rest of the Big Tech world.

China is taking notice, which will add to the drama of the broader U.S.-China tariff talks over the coming months.

This Saudi development is a significant trend to focus on over the coming months. As per the analyst, the AI theme is a bullish indicator that further shows the U.S. tech’s lead in this fourth Industrial Revolution.

He stated that there is one chip fueling this generational spending: the Godfather of AI, Jensen and Nvidia. This will be just the beginning as tech players like the hyperscalers, Palantir, Tesla, and others see the game-changing AI market opportunity in the Middle East. Ives expects bigger AI deals on the horizon, Ives added.

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