Why Nvidia, Microsoft, Oracle, Arm and other AI stocks are rising on Wednesday

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.