'Semiconductors Are The New Oil:' Wealth Manager Says Saudi Arabia's Need For Data Centers Is Nudging It Toward Historic US Talks
Portfolio Pulse from Shanthi Rexaline
Saudi Arabia's need for data centers and semiconductors, described as the 'new oil,' is driving it toward a historic pact with the U.S., potentially offering security guarantees and a pathway to diplomatic ties with Israel. The U.S. could leverage this need, given its control over semiconductor exports, as Saudi Arabia plans to build 60 data centers and has already invested in thousands of Nvidia's H100 chips for AI applications. The iShares MSCI Saudi Arabia ETF (KSA) and the Global X Artificial Intelligence & Technology ETF (AIQ) saw slight declines in their recent trading sessions.
May 02, 2024 | 11:08 am
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NEGATIVE IMPACT
The Global X Artificial Intelligence & Technology ETF (AIQ) saw a slight decrease, potentially influenced by broader market perceptions of the tech sector, including developments in AI chip exports and Saudi Arabia's tech investments.
AIQ's performance could be indirectly affected by the U.S.'s control over semiconductor exports and Saudi Arabia's aggressive investment in AI technology, as these factors influence market perceptions of the AI and tech sectors.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The iShares MSCI Saudi Arabia ETF (KSA) experienced a minor decline, reflecting the geopolitical and technological shifts impacting Saudi Arabia's investment landscape.
Given Saudi Arabia's significant investments in technology and data centers, any geopolitical developments or agreements with the U.S. could impact investor sentiment towards Saudi-related assets, including the KSA ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80