President Donald Trump’s foray into Stargate could be a major boon for these tech companies, according to Wall Street. The $500 billion joint venture between OpenAI, Oracle and SoftBank announced earlier this week aims to strengthen artificial intelligence infrastructure in the United States. Shares of Oracle and Microsoft are up nearly 15% and 3%, respectively, since the start of the week. Microsoft is an investor in OpenAI. ORCL 5D mountain of Oracle shares over the last five trading days. Wall Street views the move as an overall positive for the sector, with Citi’s Tyler Radke noting that it should support strong capital spending by driving demand for greater inference and training capacity. The project also requires more IT and electricity, which could lead to greater investments in grid infrastructure and power transmission, said UBS’s Solita Marcelli. Goldman Sachs analyst Kash Rangan sees Oracle and Microsoft as the biggest winners from the government’s focus on AI. In the short term, Rangan sees Microsoft as the likely biggest winner given its strong balance sheet and capital spending for 2025. Tailwinds for Oracle could take longer, the analyst said, citing the “deadline delivery” of two to three years for the operation of AI data centers. . TD Cowen’s Derrick Wood expects the deal to lead to more capital investment in AI for Oracle, which stands to benefit from diverting some OpenAI training workloads away from Microsoft. It’s also expected to further delay Oracle and help the company grow its cloud infrastructure revenue at a compound annual growth rate of more than 50% through 2027. For Microsoft, offloading some of its workloads OpenAI training course will allow the company to use more graphics processing. units for inference and improve the efficiency of capital expenditure, he added. “This momentum should contribute to MSFT’s efforts to ease supply constraints, bring more revenue-generating AI capabilities online, and re-accelerate Azure’s growth toward the mid-30% level,” Wood wrote. Microsoft and Oracle are far from being the only winners from the Stargate project. Piper Sandler’s James Fish highlighted Arista Networks as a potential winner, highlighting its exposure to Oracle, Microsoft and OpenAI, as well as the strength of its Ethernet switching portfolio. “Given that switching is >50% of network spend and Arista’s share of >30% in high-end data center switching, we see this as a +$6B gain (addressable addressable market) over 5 years,” the analyst wrote. Fish also sees Pure Storage as an “underappreciated way” to invest behind Stargate to achieve storage capacity, estimating a total addressable market of $10 billion.