Amazon Expands into Saudi Arabia's AI Market Amid Overvaluation Concerns
Amazon has announced plans to launch its first AWS Cloud Infrastructure Region in Saudi Arabia by December 2026 as part of a strategic partnership with HUMAIN, a Public Investment Fund company. The AI Zone will utilize Amazon's proprietary Trainium chips alongside NVIDIA's leading AI hardware to enable efficient AI training and inference.
The collaboration positions AWS as the preferred AI partner for HUMAIN, solidifying its position in the region's growing AI market. Amazon's expansion into Saudi Arabia's AI infrastructure zone highlights its focus on high-growth cloud and AI markets, driving the company's valuation multiple.
According to GuruFocus' proprietary GF Value metric, Amazon is approximately 6.1% overvalued at its current price of $262.28 per share. However, the strong GF Score of 93 out of 100 reflects Amazon's robust fundamentals, including high growth and profitability scores.