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Bank of America increased its price target for Nvidia (NVDA) stock to $160 from $150, citing major wins in sovereign artificial intelligence projects that could offset China export restrictions in 2026. The upgrade comes as Nvidia secures significant AI infrastructure deals in the Middle East, particularly with HUMAIN, a Saudi Arabia Public Investment Fund subsidiary.
BofA estimates Nvidia could receive approximately $7 billion in direct contracts, with Phase 1 alone including 18,000 Blackwell GPUs worth roughly $700 million. The bank projects that the chip maker will deliver several hundred thousand advanced GPUs over five years.
According to Bank of America analysts, the emerging sovereign AI market represents a $50 billion annual opportunity, accounting for 10%-15% of the global $450 billion to $500 billion AI infrastructure market.
These sovereign AI initiatives complement commercial cloud investments by focusing on training and inference of large language models tailored to local cultures and languages. The bank maintained its “Buy” rating on NVDA stock, citing strengthening long-term AI demand and GPUs becoming the new “coin of the realm” in global technology infrastructure.
Nvidia Secures a Big-Ticket Deal
Earlier this week, Nvidia announced a multibillion-dollar agreement with Saudi Arabia’s Humain to supply over 18,000 Blackwell AI chips. The deal will support data centers totaling 500 megawatts in Saudi Arabia, with the initial deployment utilizing Nvidia’s advanced GB300 Blackwell chips.
The announcement boosted Nvidia stock by more than 5% on Tuesday, May 13, highlighting the growing importance of AI infrastructure development beyond traditional Western markets.
Competitor Advanced Micro Devices (AMD) also announced it would supply chips to Humain as part of the same 500-megawatt AI capacity build, with a reported $10 billion commitment from the Saudi company. AMD stock rose 4% following the news.
The Saudi deals coincided with President Donald Trump’s administration’s release of new export restrictions targeting China. His administration eliminated the previous “AI Diffusion Rule” but maintained license requirements for chip exports to China. The recent development signals a shift toward bilateral negotiations for AI chip exports rather than broad global restrictions.
Nvidia has previously responded to restrictions by designing modified chips like the H20 and L40 that remain powerful while staying below regulatory thresholds for Chinese sales.
CEO Jensen Huang has actively engaged with policymakers, warning against overly restrictive trade policies that could harm American competitiveness, including attending a private dinner with Trump at Mar-a-Lago last month to advocate for more flexible international market access.
Is Nvidia Stock a Good Buy Right Now?
Valued at a market cap of $3.3 trillion, Nvidia stock is among the largest companies in the world. Nvidia stock has returned more than 40% in the past 12 months, 1,400% in the last five years, and a staggering 25,000% since May 2015. Despite its massive size, the semiconductor giant is forecast to grow sales by 18% annually in the next five years and earnings by 17.6%.
Out of the 44 analysts covering NVDA stock, 37 recommend “Strong Buy,” two recommend “Moderate Buy,” four recommend “Hold,” and one recommends “Strong Sell.” The average target price for NVDA stock is $166, above the current price near $135.
