AI chips are the new ‘coin of the realm’ as they grease the wheels of geopolitical negotiations, BofA says

• Analysts at Bank of America are bullish on chip stocks like Nvidia as mega-projects in the Middle East highlight long-term demand for AI computing. Also bolstering the case for the stocks is the emergence of AI chips as the new "coin of the realm," serving as currency in geopolitical talks.

AI chips, such as the graphics processing units that are critical to Nvidia's success, have become so important globally they are like a form of currency in geopolitical talks on trade, according to analysts at Bank of America.