Saudi Arabia Becomes Major AI Chip Customer After U.S. Ban on China

Following U.S. restrictions on AI chip exports to China, Saudi Arabia has quickly emerged as a major new market for American semiconductor companies. Nvidia and AMD announced significant deals with Humain, a newly launched AI subsidiary of Saudi Arabia’s Public Investment Fund, to supply hundreds of thousands of high-performance processors over the next five years. These chips will support large-scale AI data centers with capacities reaching up to 500 megawatts. As a result, Nvidia shares rose 5.6% and AMD climbed 4% following the news. Super Micro Computer (Supermicro) also saw gains after signing a multiyear agreement with Saudi company DataVolt to provide systems for hyperscale AI campuses in both Saudi Arabia and the U.S.—a deal estimated at over $20 billion. Analysts project Saudi AI investments could generate $3 to $5 billion in annual chip sales and up to $20 billion in total spending. These moves are seen as a way to offset declining sales to China and address infrastructure constraints in the U.S. Other tech firms such as Broadcom, Coherent, and Marvell Technology are also expected to benefit. Meanwhile, the UAE is in discussions to acquire over 1 million Nvidia chips, potentially bypassing current restrictions. Analysts view this Middle Eastern push as a transformative development in the global AI market.