Nvidia ( NVDA , Financial ) stock jumped 4% on Wednesday as investors cheered news about Stargate’s $500 billion AI infrastructure project. Major technology companies SoftBank OpenAI Oracle MGX SoftBank and OpenAI have chosen Nvidia as their main technology ally alongside Microsoft (MSFT, Financial).
Stargate will immediately invest $100 billion in its operations with a four-year full funding deployment timeline. To meet AI’s computing needs, the company will build state-of-the-art U.S. data centers across the country. By participating in the Stargate data center project, Nvidia has established its leadership position in AI hardware technology, particularly for GPUs designed to handle big data processing.
Nvidia saw its market value increase to $3.58 trillion with the announcement, helping it surpass Apple’s $3.35 trillion. The market reaction shows how Nvidia has gained greater power in AI development while evolving technology infrastructure into the future.
This article was first published on GuruFocus.
