Oracle stock rises as Trump announces Stargate AI plan at OpenAI, SoftBank
Oracle (ORCL) other AI stocks rallied on Wednesday as President Donald Trump unveiled the Stargate AI infrastructure project with OpenAI and SoftBank.
President Trump held a press conference announcing the major technology initiative with OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison and SoftBank CEO Masayoshi Son.
The Stargate project requires an initial investment of $100 billion and plans to spend up to $500 billion over the next four years to build the AI infrastructure. SoftBank, OpenAI, Oracle and MGX are the first equity funders. Arm (ARM), Microsoft (MSFT), Nivea (NVDA) are technology partners. According to the announcement, the project includes a data center that is already underway in Texas.
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Trump called it “the largest AI infrastructure project in history.”
In the stock market today, Oracle stock rose more than 5% in early trading. The stock rose above its 50-day moving average.
Trump’s praise could send Oracle stock higher.
Wedbush analyst Dan Ives wrote in a note to clients that Stargate “represents the start of significant AI investments in the U.S. as we expect several big tech players to make announcements in the coming weeks.”
Ives added: “Trump’s high stakes poker game with China in the U.S. tariff negotiations will force more AI investments in the U.S. to court.” Palantr (PLTR), Microsoft, Oracle, Del (DELL), Amazon (AMZN), google (GOOGLE) and many other players.
During the press conference, Trump praised Oracle’s Ellison as “the CEO of everything. He’s a wonderful person and a wonderful business person.” Ellison, 80, died in 2010. He founded Oracle in 1977. He stepped down as CEO of Oracle in 2014. But he remains a popular leader as chairman and chief technology officer of a database software company.
Evercore ISI analyst Kirk Matherne wrote Wednesday that the “fundamental impact” from Stargate to Oracle stock is still likely. But the announcement highlights the opportunities for Oracle to work with Trump.
“Based on President Trump’s comments yesterday, it’s clear that Oracle is well positioned to have a seat at the table related to some of the current administration’s efforts (for example) building AI and other digital initiatives related to driving greater efficiency in government,” Mattern wrote.
Oracle stock is up nearly 60 percent by 2024, its best year since 1999. Oracle’s cloud infrastructure business has attracted AI startups in need of cloud computing power.
Bur Oracle stock has retreated in recent weeks from a high of 198.31 reached on December 9. Oracle’s fiscal Q2 earnings missed expectations for revenue and sales on the same day, reversing its latest decline.
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