Wall Street analysts said Monday’s surprise announcement by the White House of the Stargate project created new opportunities for artificial intelligence-related stocks and other companies. The joint venture between SoftBank, Oracle and OpenAI has pledged to invest up to $500 billion in U.S. artificial intelligence infrastructure, $100 billion of which is immediately available. So far, 10 data centers are under construction in the United States, with a total of 20 planned. UBS said the deal appears to be “heavily dependent” on Nvidia’s computer technology and hardware solutions, bringing upside to its stock price. “While investors are increasingly worried about peak computing demand, this should go a long way toward calming those concerns,” UBS analyst Timothy Arcuri wrote in a note Wednesday. concerns, and could potentially add growth runway for NVDA after 2026. Oracle is another stock that analysts believe will benefit from the continued buildout of artificial intelligence infrastructure, Evercore ISI analyst Kirk Materne said. The administration strikes more deals. “We believe the Stargate announcement is a reminder that Oracle’s opportunities at the federal level are significant and another important consideration when considering the new administration’s tenure,” Mattern said in a note on Tuesday. A potential revenue driver. ORCL 1Y Mountain Oracle over the past year. Likewise, UBS also highlighted Microsoft and Oracle as Stargate winners. Analyst Karl Keirstead said the two are “natural and expected choices” for OpenAI to train the capabilities of its graphics processing units. “That said, this data center expansion may be larger than most Oracle analysts anticipate,” Kelstead said in a research note on Tuesday. “We believe this is a clear net positive for Oracle stock and its OCI trajectory over the next few years,” RBC Capital Markets analyst Anthony Coding wrote. Another area that will benefit from the deal is the global cement and construction companies needed to build the data center, which will require “significant amounts of building materials.” Analysts top construction materials suppliers CRH and Heidelberg Materials AG, which will benefit from increased demand from the deal. Coding said: “If the later stages of Stargate lead to investment across the United States, we believe CRH is the largest beneficiary of global cement companies based on our analysis of the end-market exposure of the companies we track.” CRH 1Y Mountain CRH’s past year stock. —CNBC’s Michael Bloom contributed to this report.
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