A wealth manager thinks that Saudi Arabia might become friends with the United States and Israel because they need computers and chips to run their data centers. The United States can make these things, so Saudi Arabia wants to be nice to them. This way, the United States gets cheaper oil and good relations in the Middle East. Read from source...
1. The title 'Semiconductors Are The New Oil:' Wealth Manager Says Saudi Arabia's Need For Data Centers Is Nudging It Toward Historic US Talks is misleading and exaggerated. Semiconductors are not the new oil, as they are not a finite resource that can be monopolized or traded on global markets. Semiconductors are essential for many industries and applications, but their value depends on various factors, such as innovation, quality, demand, supply chain, etc. Oil is a commodity that has historically driven geopolitical conflicts and economic power dynamics, while semiconductors are more of a enabling technology that supports different sectors and industries.
2. The article relies on a single source, Lumida Wealth's Ram Ahluwalia, who is presented as an expert or authority on the matter, without providing any evidence or credentials to support his claims. The article does not mention any other perspectives, data, or analysis that could challenge or complement his viewpoint. This makes the article biased and unreliable, as it lacks diversity and objectivity in its sources and information.
3. The article implies that the U.S. has some leverage or influence over Saudi Arabia's semiconductor needs, by suggesting that the U.S. can interrupt Nvidia chip flow to Riyadh. This is a dubious argument, as it assumes that Nvidia is the only or main supplier of semiconductors to Saudi Arabia, and that the U.S. has the power to restrict or block their exports. The article does not provide any evidence or details on how this would work, or what the consequences would be for both parties. This argument also ignores the fact that Saudi Arabia is diversifying its sources of semiconductors and technology, by investing in domestic production, partnerships, and acquisitions with other countries and companies, such as Intel, SoftBank, Lucid Motors, etc.
4. The article uses emotional language and tone, such as "need", "nudging", "historic", "win-win", etc., to create a sense of urgency and excitement around the potential pact between the U.S. and Saudi Arabia. This makes the article sensationalist and speculative, rather than informative and analytical. The article does not provide any facts or figures on the benefits or risks of such a pact, nor does it address the possible obstacles or complications that could arise from it.
5. The article is too short and vague to cover the complex and dynamic topic of semiconductors and geopolitics. It does not explain the background, context, or imp
Based on the article provided, it seems that semiconductors are becoming a crucial asset for both Saudi Arabia and the U.S., as they are essential for data centers and other advanced technologies. Therefore, I would recommend investing in ETFs that focus on these sectors, such as iShares MSCI Saudi Arabia ETF (KSA) and Global X Artificial Intelligence & Technology ETF (AIQ). These ETFs provide exposure to the growth potential of semiconductors and data centers in the region. However, investors should also be aware of the risks associated with investing in these markets, such as political instability, economic downturns, and regulatory changes that may affect the performance of these ETFs. It is important to diversify your portfolio and conduct thorough research before making any investment decisions.