Bank of America has raised its price targets for tech giants NVIDIA and AMD, pointing to major new deals in sovereign AI initiatives as a key driver of future growth especially as U.S. export restrictions to China loom closer in 2026.
The bank now sees NVIDIA shares reaching $160, up from $150, and AMD shares hitting $130, up from $120.
What’s fueling the optimism? Both chipmakers recently unveiled long term partnerships with HUMAIN, a Saudi Arabian firm backed by the kingdom’s Public Investment Fund. These multi year infrastructure projects are aimed at building out large scale artificial intelligence systems tailored to local languages and cultural needs.
BofA believes these initiatives could be worth between $3 billion and $5 billion each year, potentially totaling $15 billion to $20 billion over several years. The firm also estimates the broader sovereign AI market could surpass $50 billion annually making up around 10%–15% of the global $450 billion to $500 billion AI infrastructure space.
In a note, BofA highlighted that sovereign AI efforts align well with global cloud strategies while addressing issues like limited data center power availability in the U.S. and geopolitical barriers, including trade restrictions with China.
As for the numbers, NVIDIA is expected to rake in about $7 billion through direct contracts. Just the first phase of their agreement includes the sale of 18,000 of its cutting edge Blackwell GPUs, valued at around $700 million. Over the next five years, NVIDIA could end up delivering hundreds of thousands of these high end chips.
AMD, meanwhile, is projected to contribute roughly $10 billion worth of technology starting in late 2026. Their role involves not just GPUs and CPUs, but also networking solutions and their ROCm open source software platform. AMD’s project appears to be a joint venture with Cisco, and according to BofA, it’s a significant milestone that places AMD on more equal footing with NVIDIA in large scale deployments.
Bank of America reaffirmed its “Buy” ratings for both companies, emphasizing that AI momentum is only growing and that GPUs are fast becoming the most valuable currency in this new era of computing.
