Wedbush’s Ives sees AI boom in Middle East as turning point for U.S. tech giants
Investing.com -- Wedbush analyst Dan Ives said the rapid expansion of artificial intelligence infrastructure in the Middle East marks a “watershed moment” for U.S. tech companies, driven by major developments in Saudi Arabia and the United Arab Emirates.
“It’s becoming crystal clear the AI Revolution has found its next major area of penetration... the Middle East,” Wedbush wrote in a note.
The analyst highlighted the recent announcements in Riyadh and Abu Dhabi as signs of a new era of growth for U.S. tech giants such as Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Palantir (NASDAQ:PLTR), and Tesla (NASDAQ:TSLA).
Wedbush notes that Saudi Arabia has committed to purchasing 18,000 Nvidia chips for a 500-megawatt data center being built by Humain.
Meanwhile, the UAE has received support from President Trump to build “the largest AI data center outside the U.S.” in Abu Dhabi.
“We believe the market opportunity in Saudi Arabia and UAE alone could over time add another $1 trillion to the broader global AI market in the coming year,” Wedbush said.
The developments come amid a broader shift in U.S. trade policy.
“No Nvidia chips for China... red carpet rollout for the Kingdom,” the firm wrote, contrasting Middle East expansion with chip export restrictions affecting Beijing.
Ives called the momentum in the region “a bullish indicator that further shows the U.S. tech’s lead in this 4th Industrial Revolution.”
He emphasized Nvidia’s dominance, again referring to CEO Jensen Huang as “the Godfather of AI.”
Wedbush believes Saudi Arabia, the UAE, and Qatar are now on the “priority list” for U.S. tech, with regional demand for AI chips, software, robotics, and data centers expected to surge over the next decade.
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