Advanced Micro Devices (AMD) shares jumped more than 5% on Wednesday following a string of developments that reposition the chipmaker at the forefront of the global artificial intelligence (AI) race.
Chief among them: a newly approved $6 billion share buyback authorization—on top of an existing $4 billion plan—and a landmark deal with Saudi Arabian AI firm Humain to co-develop data center infrastructure.
The partnership between AMD and Humain, a subsidiary of the Kingdom’s $925 billion Public Investment Fund, aims to roll out 500 megawatts of AI computing capacity spanning Saudi Arabia and the U.S. over the next five years. The total investment could reach $10 billion, making it one of AMD’s most ambitious ventures to date.
In a statement, AMD Chair and CEO Lisa Su called the expanded buyback plan a vote of confidence in the company’s “strategic direction, growth prospects, and ability to consistently generate strong free cash flow.” Analysts took note. Bank of America boosted its price target for AMD to $130, citing the growing potential of sovereign AI infrastructure and the tailwinds from eased export rules.
Crucially, AMD’s involvement in the Saudi project places it, for the first time, on “similar footing” with rival Nvidia (NVDA) in terms of large-scale AI infrastructure engagement, according to BofA analyst Vivek Arya.
Nvidia’s Blackwell Superchips Power AI Push
While AMD eyes a long-term ramp-up starting in 2026, Nvidia is already cashing in. The Silicon Valley giant confirmed it will supply hundreds of thousands of its most advanced chips to Humain, including the delivery of a Grace Blackwell supercomputer equipped with 18,000 GB300 GPUs in Phase 1 alone. Estimated at $7 billion, Nvidia’s deal positions the company for immediate deployment of sovereign AI systems.
Nvidia stock climbed nearly 4% Wednesday, building on Tuesday’s surge that briefly pushed its market cap past $3 trillion. The rally coincides with a broader Saudi-led push to dominate regional and global AI development through massive investments in chips, software, robotics, and data center infrastructure.
Wedbush Securities characterized the Riyadh announcement as a “bullish eye-opener,” arguing that sovereign AI initiatives could add as much as $1 trillion to the global AI market—an upside not yet fully priced into chipmaker valuations. The firm expects follow-on contracts from hyperscalers, defense tech firms, and automotive AI players, framing the Middle East as the next frontier for AI expansion.
Washington’s Policy Shift Unlocks New Markets
Also lifting sentiment was a regulatory pivot in Washington. The U.S. Department of Commerce announced plans to rescind the “AI Diffusion Rule,” a Biden-era measure that restricted exports of advanced AI chips to foreign nations. The rollback removes a key hurdle for companies like AMD and Nvidia, which have seen growth constrained by limits on global chip sales—particularly to China and other emerging tech markets.
Bank of America analysts believe sovereign AI projects like those in Saudi Arabia could generate $15 billion to $20 billion over multiple years, mitigating risks tied to U.S.-China trade frictions and strained domestic power infrastructure.
For AMD, the convergence of strategic deals, buyback momentum, and a favorable policy backdrop offers a timely catalyst. Shares, while still down roughly 25% over the past year, have now regained much of their 2025 losses. With sovereign AI demand gaining steam and Wall Street sentiment turning positive, AMD and Nvidia are racing ahead in a new era of globally funded, government-driven AI expansion.
As the global semiconductor chessboard shifts, the message from Riyadh is clear: AI supremacy will be fueled by geopolitical capital—and the U.S.'s top chipmakers are ready to cash in.
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