Nvidia stock investors just got fantastic artificial intelligence (AI) news from President Trump

President Trump announced Stargate, a $500 billion artificial intelligence (AI) infrastructure project.

| More on:
A man looks surprised as a woman whispers in his ear.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

On Tuesday afternoon, President Donald Trump held a press conference to announce Stargate, a $500 billion artificial intelligence (AI) infrastructure project in the United States. He called it the "largest AI infrastructure project, by far, in history."

What you know about the Stargate project

Stargate is a joint venture between top tech companies Oracle, SoftBank Group, and OpenAI. Oracle is best known for its enterprise database software and cloud computing services. SoftBank, based in Japan, is an investment holding company that mainly invests in tech companies. OpenAI is the creator of ChatGPT, the chatbot that caused a sensation when it launched in late 2022. It showcased the amazing capabilities of generative AI, sparking a rush among companies to acquire generative AI capabilities.

Trump was joined at the conference by Larry Ellison, co-founder and executive chairman of Oracle; Masayoshi Son, SoftBank founder and CEO; and OpenAI co-founder and CEO Sam Altman.

Stargate will create over 100,000 American jobs, Trump said, emphasising that the project will be entirely in the United States. He added that he was "going to help a lot through emergency declarations." I think investors can take this to mean that he plans to lessen any regulatory hurdles that could slow the project's progression. He also mentioned that the "colossal" data centres could include on-site electricity generation. AI-enabled data centres are power hungry, so having adequate and dependable power is a major consideration.

Oracle's Ellison outlined the project's scope. Construction has started on 10 data centres being built in Abilene, Texas, which is about 180 miles west-southwest of Dallas. Each building will be a half a million square feet, which is bigger than seven regulation-size NFL football fields. The number of facilities will expand to 20 and there will be locations beyond Abilene, Ellison said. It wasn't clear to me if he meant there will be 20 facilities in Abilene and additional ones in other locations. He might have meant there will be 20 in total — 10 in Abilene and 10 in other locations. No matter, as the main takeaway remains that this is a massive AI infrastructure project.

SoftBank's Son talked about money and other partners. He said Stargate "will start immediately deploying $100 million" with the goal of bringing the total investment to $500 billion within the next four years, or by the end of Trump's term.

Investment firm MGX is an additional investing partner in Stargate, and Nvidia (NASDAQ: NVDA) is the joint venture's technology partner, said Son.

Created with Highcharts 11.4.3Nvidia PriceZoom1M3M6MYTD1Y5Y10YALL23 Jan 202423 Jan 2025Zoom ▾Mar '24May '24Jul '24Sep '24Nov '24Jan '25Apr '24Apr '24Jul '24Jul '24Oct '24Oct '24Jan '25Jan '25www.fool.com.au

Nvidia is poised to get a big boost from the Stargate project

Nvidia is the leader, by far, in providing chips — its graphics processing units (GPUs) — and related technology for AI processing in data centres. So, even if SoftBank's Son had not specifically mentioned Nvidia by name, it would be obvious for investors following Nvidia that the Stargate project would almost surely be bullish for the company. This project is going to need a boatload of Nvidia's GPUs and related tech, which is going to add much revenue to the company's coffers.

Son referred to Nvidia as Stargate's "technology partner," but it's not clear if there is a true partnership relationship beyond Nvidia being a key supplier of AI-enabling technology to Stargate. Oftentimes in the tech world, company execs will use the term "partners" for their top suppliers even if technically they're simply suppliers.

Either way, Nvidia is poised to notably benefit from what Trump called the "largest AI infrastructure project, by far, in history."

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Beth McKenna has positions in Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia and Oracle. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

Robot humanoid using artificial intelligence on a laptop.
International Stock News

Is Nvidia the top artificial intelligence stock to buy in July?

As we reach the halfway mark in 2025, it's clear that artificial intelligence remains a dominant theme in the market.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
International Stock News

Is Alphabet's stock too cheap to ignore?

There are several metrics you can use to determine the relative value of a stock.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
International Stock News

Best Stock to Buy Right Now: Apple vs. Amazon

Will Apple or Amazon be the better investment for the long run?

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
International Stock News

1 Wall Street firm just gave Nvidia stock a $250 price target. Is it time to buy?

That indicates around 60% upside from today's price, but the implications of a $250-per-share stock are far greater.

Read more »

Hand with AI in capital letters and AI-related digital icons.
International Stock News

Prediction: These 2 artificial intelligence stocks will be the world's most valuable companies in 5 years

At this point, it seems highly likely that artificial intelligence (AI) is on track to be the most impactful new…

Read more »

Man with hands of the wheel while driving Tesla.
International Stock News

Elon Musk rolls out Robotaxi Fleet in Austin. Will Tesla's stock gains stick?

There is considerable pressure on Tesla to deliver on the hype surrounding its highly anticipated Robotaxi ride-hailing service.

Read more »

AI written in blue on a digital chip.
International Stock News

Prediction: These will be the two best-performing "Magnificent Seven" stocks over the next 5 years

Two Motley Fool contributors think that the two companies below will be the best-performing Magnificent Seven stocks over the next…

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
International Stock News

What's the best driverless vehicle stock? (Hint: It's not Tesla or Alphabet)

Competition is fierce in the driverless vehicle space because this market promises to be humongous.

Read more »