How Trump’s $600 Billion Saudi Deal Could Send These Stocks Soaring

In a dramatic and highly scrutinized return to the world stage, former President Donald Trump recently unveiled a colossal $600 billion investment deal with Saudi Arabia and other Gulf nations. More than just a headline-grabber, this deal is poised to reshape global markets and deliver a major boost to a select group of American companies—particularly in the defense, AI, and tech sectors.

Here’s a breakdown of the stocks likely to benefit from this seismic geopolitical development:

From Riyadh to Wall Street:... May 20 · The Investor’s Edge: Spr... 11:49   ​

📈 Defense Giants Positioned to Profit

With $142 billion of the deal earmarked for arms and defense-related purchases, the U.S. military-industrial complex is the first and most obvious winner.

1. Lockheed Martin (NYSE: LMT)

Lockheed Martin is expected to supply a range of systems, including C-130 transport aircraft, radar platforms, and missile defense technologies. Its deep relationship with U.S. allies and reputation for reliability put it at the top of the list.

Sprngy's Take on LMT : It is expected to outperform the S&P 500 based on historical performance and has a history of paying dividends, which it will continue to do. The company has shown positive returns over the past year and five years, but insiders are selling while institutions are buying, with large institutions having reduced their holdings. Risk-adjusted returns may be less attractive, and as of October 22, 2024, Lockheed Martin is recovering from a recent price drop, with 16.89% remaining until full recovery. Retail investors have a positive sentiment, and recent trading trends indicate an upward sentiment.

2. Raytheon Technologies (NYSE: RTX)

Raytheon’s missile and radar systems are in high demand, and this deal could significantly expand its global footprint, especially in a region increasingly focused on missile defense.

Sprngy's Take on RTX: Historical performance suggests it may not outperform the S&P 500 in the near future. The company has a history of paying dividends and will continue to do so, with positive returns year-to-date, over one year, and over five years. While insiders are selling shares, institutional investors are buying, though large institutions have reduced their holdings. Risk-adjusted returns are considered attractive, retail investor sentiment is neutral, and recent trading trends show upward sentiment.

3. Boeing (NYSE: BA)

While often known for its commercial jets, Boeing is also a key player in defense. This agreement likely includes fighter jets, surveillance aircraft, and long-term logistics contracts.

Sprngy's Take on BA: Its historical performance suggests it is unlikely to outperform the S&P 500 in the near future, despite having positive returns year-to-date, over the past year, and the past five years. Large institutional investors have increased their holdings, but the risk-adjusted returns may not be attractive. As of March 4, 2019, Boeing is recovering from a price drop, still needing to recover 51.43% to return to pre-drop levels. Retail investor sentiment is neutral, while recent trading trends indicate an overbought condition.

4. Northrop Grumman (NYSE: NOC)

With capabilities in next-gen radar, electronic warfare, and cybersecurity, Northrop Grumman is well-positioned to support Saudi Arabia’s military modernization goals.

Sprngy's Take on NOC: Historically, it is expected to outperform the S&P 500 in the coming years and has a history of paying dividends, which will continue in the future. It has positive returns year-to-date, over the past year, and over five years. However, insiders and institutions are selling, and large institutions have decreased their holdings. The risk-adjusted returns may not be appealing, and although the stock is recovering from a recent price drop (with 11.33% left to reach full recovery as of April 21, 2025), retail investors are showing positive sentiment while recent trading trends indicate a downward sentiment.

5. General Dynamics (NYSE: GD)

From armored vehicles to advanced IT systems for battlefield management, General Dynamics could see a healthy boost if it secures a slice of the multibillion-dollar contracts.

Sprngy's Take on GD: It is projected to underperform the S&P 500 in the coming years, despite having a history of paying dividends and maintaining positive returns both year-to-date and over the past five years. Insider selling is occurring, while institutional buying is increasing, particularly among large institutions holding over 0.5% of the market. Risk-adjusted returns may not be attractive. As of November 14, 2024, the stock is recovering from a recent price drop, still needing a 2.74% gain to fully recover. Retail investors exhibit positive sentiment and recent trading trends show an upward direction.

🤖 Tech and AI: The New Oil

But it’s not all about defense. The Gulf states—particularly Saudi Arabia and the UAE—are placing major bets on AI and digital infrastructure, and American tech firms are cashing in.

6. Nvidia (NASDAQ: NVDA)

In one of the most eye-catching moves, Saudi Arabia reportedly plans to import 500,000 Nvidia AI chips. This solidifies Nvidia’s role as the backbone of the global AI arms race.

Sprngy's Take on NVDA: The company is expected to outperform the S&P 500 based on historical performance and has a history of paying dividends, which it will continue to do. NVIDIA has positive year-to-date, 1-year, and 5-year returns, with large institutions increasing their holdings despite insider selling. While it is recovering from a recent price drop, with 3.25% remaining to fully recover, retail investors show negative sentiment, and current trading trends indicate overbought conditions. Risk-adjusted returns may not be compelling.

7. Amazon Web Services (AMZN)

Amazon is investing $5 billion to develop an “AI Zone” in Saudi Arabia. As cloud services become the foundation of next-gen AI development, AWS stands to dominate in this new digital frontier.

Sprngy's Take on AMZN Historical performance indicates it is likely to outperform the S&P 500 in the coming years, with positive returns over both one and five years. While insiders are selling shares, institutional investors are buying, with large institutions increasing their holdings. However, the risk-adjusted returns may be less attractive. As of February 5, 2025, the company is recovering from a recent price drop, with 12.71% remaining to reach full recovery. Retail investors show positive sentiment, and recent trading trends reflect an upward momentum.

💡 Investment Takeaways

Trump’s $600 billion Middle East deal is more than political theater—it’s a pivot point for global investment. The companies named above are not just potential beneficiaries; they are central to the strategies of nations looking to leapfrog into the future via military strength and AI dominance.

For investors, this is a critical moment to watch. Defense and AI stocks were already heating up, but this deal could serve as rocket fuel—particularly for companies with existing government contracts and scalable tech solutions.

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