Investing.com -- Bank of America raised its price targets for NVIDIA and AMD (NASDAQ:AMD) on Wednesday, citing wins in sovereign artificial intelligence projects that could help offset export restrictions to China beginning in calendar year 2026.
The bank raised its target for Nvidia (NASDAQ:NVDA) to $160 from $150 and the target for AMD to $130 from $120 a share.
NVIDIA and AMD announced separate multi-year AI infrastructure projects with HUMAIN, a subsidiary of Saudi Arabia’s Public Investment Fund.
Bank of America (NYSE:BAC) estimates these projects could be worth “$3–$5 billion annually, or $15–$20 billion over a multi-year period.”
According to BofA, sovereign AI is poised to become a “$50bn+ annually” opportunity, accounting for 10%–15% of the global $450–$500 billion AI infrastructure market.
BofA said, “Sovereign AI nicely complements commercial cloud investments with a focus on training and inference of LLMs in local culture, language and needs,” and could mitigate challenges such as “limited power availability for data centers in US” and trade restrictions with China.
NVIDIA is expected to receive about $7 billion in direct contracts, with Phase 1 alone including 18,000 Blackwell GPUs worth roughly $700 million.
Over five years, BofA expects “several hundred thousand of NVIDIA’s most advanced GPUs” to be delivered.
AMD’s portion, which could total $10 billion, will likely begin later in 2026 and include “CPU, GPU, networking and its ‘open-source’ software stack called ROCm.”
While AMD’s project appears to follow a joint-venture approach with Cisco (NASDAQ:CSCO), BofA noted it marks the first time AMD is “on a ‘similar’ footing as NVIDIA in terms of engagement in large projects.”
BofA reiterated Buy ratings on both NVIDIA and AMD, citing stronger long-term AI demand and “GPU as the new ‘coin of the realm.’”