Bank of America raised its price targets for NVIDIA and AMD on Wednesday, highlighting the chipmakers’ involvement in large-scale sovereign AI initiatives, which analysts say could help counterbalance upcoming U.S. export restrictions to China set to begin in 2026.
The investment bank upped NVIDIA’s target price to $160 (from $150) and AMD’s to $130 (from $120) per share.
Both companies recently unveiled long-term AI infrastructure agreements with HUMAIN, a new artificial intelligence arm of Saudi Arabia’s Public Investment Fund (PIF).
Bank of America estimates these sovereign AI deals could be worth between $3 billion and $5 billion annually, translating to a total of $15–$20 billion over several years.
BofA projects that sovereign AI could become a $50+ billion-a-year industry, representing around 10%–15% of the broader $450–$500 billion AI infrastructure market worldwide.
The bank added that these government-led AI efforts complement commercial cloud development, especially by addressing the training and inference of large language models (LLMs) tailored to local languages, cultures, and needs. These projects may also help offset constraints such as U.S. data center power limitations and restrictions on tech exports to China.
NVIDIA is forecasted to secure around $7 billion in direct business, with its first phase involving 18,000 Blackwell GPUs, a batch valued at approximately $700 million. Over the next five years, BofA expects hundreds of thousands of high-end NVIDIA GPUs to be deployed through such contracts.
AMD’s contribution, potentially totaling $10 billion, is expected to ramp up later in 2026, with its offering including CPUs, GPUs, networking equipment, and the company’s open-source ROCm software suite.
While AMD’s involvement is tied to a joint venture structure, possibly alongside Cisco, BofA emphasized that this marks a significant moment for AMD, placing it on a competitive level with NVIDIA in terms of its role in major infrastructure projects.
Bank of America maintains Buy ratings on both stocks, citing the expanding demand for AI technologies and describing GPUs as the new “currency” in the data-driven economy.
