Key takeaways
- Shares of AI-related companies jumped Wednesday after President Trump announced a $500 billion joint venture with Oracle, OpenAI and SoftBank to build AI infrastructure in the United States.
- As key technology partners of the initiative, Nvidia, Microsoft and Arm saw their shares increase.
- Wedbush analysts believe the project could represent “the start of a wave of massive investment in AI,” anticipating further announcements in the coming weeks.
Shares of AI-related companies jumped Wednesday after the Trump administration’s announcement of a $500 billion joint venture with Oracle (ORCL), OpenAI and SoftBank sparked optimism about a growing wave investments in AI.
For Oracle, the project could mean “a significant revenue opportunity starting this year,” Morgan Stanley analysts told clients Wednesday, with part of the companies’ initial $100 billion investment appearing to be earmarked for the centers Oracle Data Center in Abilene, Texas.
The project, known as Stargate, is also “positive” for Microsoft (MSFT) as a backer of OpenAI and a partner in the initiative, analysts said.
Oracle shares jumped nearly 8% in intraday trading Wednesday, extending Tuesday’s gains ahead of the announcement, while Microsoft shares rose nearly 4%.
As key technology partners in the initiative, Nvidia (NVDA) and Arm Holdings (ARM) were also among the companies that saw their shares rise, with shares of Arm climbing 15% and Nvidia rising nearly 5%.
Shares of several Nvidia partners and other companies in the AI chipmaker ecosystem, including Dell (DELL), TSMC (TSM), and Hewlett Packard Enterprise (HPE), also rose.
Wedbush analysts believe the project could also represent “the start of a wave of massive investment in AI in the United States,” anticipating further announcements in the coming weeks.
