Nvidia, tech stocks rally after Trump announces $500 billion Stargate AI project
Shares of Navia (NVDA) jumped more than 4% on Wednesday, extending the previous day’s gains after Trump announced a massive $500 billion AI infrastructure project.
The project will create a company called Stargate, backed by SoftBank ( 9984.T ), OpenAI, Oracle ( ORCL ) and MGX. Open AI Nivea is also named Microsoft. (MSFT) and British chip designer Arm (ARM) as “key early technology partners” for the project, which aims to build the US data centers needed to power artificial intelligence. OpenAI says Stargate will “deploy $100 billion immediately” and invest up to $500 billion over the next four years.
Nvidia’s profit on Wednesday lifted its market cap to $3.58 trillion, ahead of Apple’s ( AAPL ) $3.35 trillion.
Meanwhile, Microsoft shares were up 3 percent early Wednesday, while ARM was up more than 15 percent. Oracle shares rose 5.5%, and Softbank jumped nearly 11%.
“Stargate will build the physical and virtual infrastructure to power the next generation in AI, which will include building massive data centers, massive structures.” Trump said in his speech. Tuesday. “These buildings, big, beautiful buildings are going to employ a lot of people.”
Trump said the effort is aimed at maintaining America’s lead in developing artificial intelligence ahead of China.
The announcement follows executive orders from the Biden administration last week on artificial intelligence aimed at limiting the flow of AI chips to China and accelerating the construction of data centers in the US.
“This comes at a critical juncture as we expect Trump to aggressively discourage further AI investments in the U.S.,” Wedbush analyst Dan Ives wrote late Tuesday. Ives said the project is “all part of a broader game of high-stakes poker with China.”
After the announcement Elon Musk took aim at OPNAI On social media, X. wrote in response to a post from OpenAI about Stargate: “They really don’t have the money.” Open AI He estimated that $5 billion was lost. But in 2024 Revenue was only 3.7 billion dollars.
Tech stocks across the board rallied on major AI investment news. Dell ( Dell ) and Super Microcomputer ( SMCI ), which make servers using NVIDIA chips, rose 7 percent and 6 percent, respectively. Nasdaq Futures (NQ=F) rose 1.4%, ahead of S&P Futures’ (ES=F) 0.6% gain.
Nvidia’s rise on Wednesday sent shares up more than 11 percent from last week.
The stock fell in early January after data that three of the chipmaker’s biggest customers — Amazon ( AMZN ), Google ( GOOG ) and Meta ( Meta ) — Nvidia has canceled some server commands using Blackwell AI chips. Due to obstructions and heating problems. Stocks have been under pressure from the Biden administration’s move to export AI chips.