Published Wed, Jan 22 202511:27 AM EST Updated Wed, Jan 22 202512:06 PM EST
he surprise Stargate project announcement at the White House on Monday creates new opportunities for artificial intelligence-related stocks — and some other companies too, according to Wall Street analysts.
The joint venture among Softbank, Oracle and OpenAI pledged to invest up to $500 billion in the U.S. ’s AI infrastructure, with $100 billion of that immediately available. So far, 10 data centers are currently under construction in the U.S., with plans to build a total of 20. Technology partners named so far in the deal also include Nvidia, Microsoft, Arm Holdings and Oracle.
The deal appears to “rely heavily” upon Nvidia’s computer technology and hardware solutions – presenting a tailwind for its shares, according to UBS.
“While investors have become increasingly concerned about peak compute demand, this should go a long way to quelling these concerns and potentially adding growth runway for NVDA beyond [calendar] 2026,” UBS analyst Timothy Arcuri wrote in a Wednesday note.
Oracle is another stock analysts think will benefit from the increasing buildout of AI infrastructure. The company could see additional deals with the federal government, according to Evercore ISI analyst Kirk Materne.
“We believe the Stargate announcement is a reminder that Oracle’s opportunities at the Federal level are material and another potential revenue driver when thinking out over the term of this new administration,” Materne said in a note on Tuesday.
Similarly, UBS also highlighted Microsoft and Oracle as winners owing to Stargate. The two are a “natural and expected choice” for OpenAI in training graphics processing units capacity, according to analyst Karl Keirstead.
“That said, the scale of this data center build-out is likely even larger than most Oracle analysts contemplated,” Keirstead said in a research note on Tuesday. “In our view this is a clear net positive for Oracle shares and its OCI trajectory in the coming years.”
Beyond AI-technology stocks, another segment that stands to benefit from the deal are global cement and construction companies needed to build out the data centers – which will require “an awful lot of building materials,” RBC Capital Markets analyst Anthony Coding wrote.
Building materials supplier CRH and Heidelberg Materials are the analyst’s top picks to benefit from heightened demand as a result of the deal.
“Should the later stages of Stargate lead to investments across the U.S., based on our analysis of the end market exposure of the companies we follow, we believe that CRH Is the biggest beneficiary of the global cement players,” Coding said.
Broadly, the deal is a positive for AI infrastructure companies. Wells Fargo analyst Aaron Rakers named chipmaker Arm Holdings — which was named in the Stargate annoucement as one of the key tech partners — as a beneficiary. Computer networking company Arista Networks also could see a “derivative positive” from Oracle’s involvement in Stargate. Oracle is one of Arista’s main customers.
—CNBC’s Michael Bloom contributed to this report.
These are the 2 stocks that will win the most from Trump’s AI project Stargate, analysts say
Published Thu, Jan 23 20251:16 PM EST Updated Thu, Jan 23 20253:46 PM EST
President Donald Trump’s Stargate foray could present a major boon for these technology companies, according to Wall Street.
The $500 billion joint venture between OpenAI, Oracle and SoftBank announced earlier this week aims to beef up artificial intelligence infrastructure in the U.S. Shares of Oracle and Microsoft have rallied nearly 15% and 3%, respectively, since the start of the week. Microsoft is an investor in OpenAI.
Wall Street views the move as an overall positive for the industry, with Citi’s Tyler Radke noting it should support strong capital expenditures by buoying demand for greater inference and training capacity. The project also requires more computing and electricity, which could lead to greater investments in grid infrastructure and power transmission, said UBS’ Solita Marcelli.
Goldman Sachs analyst Kash Rangan views Oracle and Microsoft as the prime winners from the government’s prioritization of AI.
Near term, Rangan views Microsoft as the likely bigger winner given its strong balance sheet and capital expenditures for 2025. Tailwinds for Oracle may take longer, the analyst said, citing the two- to three-year “lead time commitment” for operating AI data centers.
TD Cowen’s Derrick Wood expects the agreement to lead to more capital AI investments for Oracle, which should benefit from a diversion of some OpenAI training workloads away from Microsoft. This should also lead to a new backlog for Oracle and help the company boost its cloud infrastructure revenues at a compounded annual growth rate exceeding 50% through 2027.
For Microsoft, unloading some of its OpenAI training workloads will enable the company to use more graphics processing units for inference and improve capital expenditure efficiencies, he added.
“These dynamics should help with MSFT’s efforts to ease supply constraints, bring more revenue-generating AI capacity online, & re-accelerate Azure growth towards the mid 30% level,” Wood wrote.
Microsoft and Oracle are far from the only potential winners of the Stargate venture.
Piper Sandler’s James Fish highlighted Arista Networks as a potential winner, noting its exposure to Oracle, Microsoft and OpenAI, as well as the strength of its ethernet switching portfolio. “Given switching represents >50% of networking spend and Arista’s >30% share of high-end datacenter switching, we see this as a +$6B [serviceable addressable market] over 5 years,” the analyst wrote.
Fish also views Pure Storage as an “underappreciated way” to invest behind Stargate to meet storage capacity, estimating a $10 billion total addressable market.
