11:31 AM EDT, 05/19/2025 (MT Newswires) -- Nvidia ( NVDA ) , Microsoft ( MSFT ) and other US semiconductor and software giants face a "watershed moment" as the artificial intelligence revolution expands to the Middle East, Wedbush Securities said Monday in a note.

"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 years, and this dynamic is not being priced into the market and tech names," Wedbush said.

President Donald Trump's Middle East trip culminated in deals for the delivery of 18,000 Nvidia ( NVDA ) chips to Saudi Arabia for a 500-megawatt data center and for the largest AI data center outside the US in Abu Dhabi, the report said.

The announcements mark the "start of a new era of growth for the US tech sector and a gamechanger for the industry," said the investment firm.

The "massive AI buildout" in Saudi Arabia and the UAE might open up a "huge opportunity" and total addressable market in the next decade for Nvidia ( NVDA ), Palantir Technologies ( PLTR ) , Microsoft ( MSFT ), Amazon ( AMZN ) , Alphabet (GOOG,GOOGL), Tesla (TSLA) and other companies, Wedbush said.

The tech boom in the Middle East "also speaks to this global game of high stakes poker being played by the Trump administration" as China faces US chip restrictions, the report said. " China is clearly taking notice and this adds to the drama" of broader US-China trade talks, Wedbush said.

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