Shares of Nvidia (NASDAQ:NVDA) are jumping over 4% in morning trading after President Trump announced a $500 billion artificial intelligence infrastructure plan yesterday.
24/7 Wall St. Insights:
-
President Trump unveiled Stargate, a JV between Oracle (ORCL), OpenAI, and SoftBank (SOBKY), that will see Nvidia (NVDA) become a key partner.
-
Stargate is said to be the “largest AI infrastructure project in history.”
-
Oracle is already a major customer of Nvidia, using its advanced Blackwell chips for its massive, cloud-based AI supercomputer.
-
If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Trending Video
As a key architect in existing AI infrastructure, from advanced accelerators powering everything the cloud to on-premises data centers, Nvidia is in a prime position to capitalize on the massive spending spree.
What happened?
Trump unveiled Stargate, a joint venture between Oracle (NYSE:ORCL), OpenAI, and Japan’s SoftBank (OTC:SOBKY), to build “the physical and virtual infrastructure to power the next generation of AI,” including data centers around the country. Oracle CEO Larry Ellison said the first 1-million-square foot data center was already being built in Texas.
The JV plans to invest $100 billion in the project with the intention of spending as much as $500 billion in it over time. It is expected to create 100,000 jobs.
What it means for NVDA stock?
Nvidia, of course, is the largest AI chipmaker and is a primary supplier to Oracle. Last year Ellison announced the world’s first zettascale AI supercomputer in the cloud, which would be powered by up to 131,072 advanced Blackwell graphic processing units (GPUs).
Oracle is one of the biggest data center operators in the U.S. OpenAI, which is backed by Microsoft (NASDAQ:MSFT), is a pioneer in generative AI. It published a white paper last week calling for more U.S. investment in the technology to stay ahead of advancements by China. CEO Sam Altman said yesterday, Stargate “will be the most important project of this era.”
SoftBank CEO Masayoshi Son committed last month to investing $100 billion in the U.S., to which Trump tried to get him to commit to making it $200 billion.
Son said Nvidia was a “key technology partner” for Stargate, along with British semiconductor company Arm Holdings (NASDAQ:ARM). It seems clear Nvidia will be a large beneficiary from what Trump called the “largest AI infrastructure project, by far, in history.”
Key takeaway
Exact details surrounding the project are still unclear as the plans and the vision for what Stargate seeks to achieve have yet to be announced. One area that will undoubtedly be targeted is healthcare.
Ellison said at the press conference that AI could analyze blood tests for the early detection of cancer. Nvidia has made clear that healthcare is an important focus for it as AI and high-performance computing (HPC) can help define the future of medicine.
Expect Nvidia’s chips and related technology to be an integral part of whatever Stargate turns into.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.