Oracle stock jumps on reports Trump announces Big AI private investment plan
President Donald Trump is reportedly set to announce billions in private investment in AI infrastructure in partnership with OpenAI, SoftBank and partnerships. Oracle (ORCL). Oracle stock jumped on the news.
In the joint venture called Stargate, the three companies have pledged an initial investment of $100 billion and plan to invest up to $500 billion over the next four years. CBS News and the Wall Street Journal. OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison and Softbank CEO Masayoshi Son are expected to make an announcement at the White House this afternoon, CBS reported.
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The collaboration begins with the Texas data center project, according to reports.
Oracle shares are up 7% at 172.27 on the stock market today.
Oracle stock is coming off its best year since 1999.
Barclays analyst Raimo Lenshaw said in a client note that the news highlights Oracle’s AI position.
“We see this as a clear positive for Oracle, highlighting the company’s strong position as an AI user and Oracle’s multi-year growth story,” Lensshaw wrote. “Furthermore, we see the news as a positive data point for software, as it appears that the new administration will encourage AI investments.”
Oracle stock has rallied nearly 60% in 2024, its best year since 1999. The database software company, founded in 1977, has increased its stake.
Bur Oracle stock has retreated in recent weeks from a high of 198.31 reached on December 9. Oracle’s fiscal Q2 earnings report missed expectations for revenue and sales on the same day. The stock fell 7% and was mostly trading lower to close the year. But the stock took on its 21-day moving average in Tuesday’s action, marking five consecutive trading days of gains.
Oracle told investors last year that it expects capital spending to double from the $7 billion it spent in fiscal 2024 at the end of May. It is not yet clear how the cost of joint ventures and partnerships will be factored into those investments. Oracle did not immediately return requests for comment on the CBS and Wall Street Journal reports.
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