Nvidia (NVDA 4.43%) The company’s stock rose sharply in Wednesday trading on the back of bullish news on artificial intelligence (AI). The company’s stock ended the day up 4.4%, with the S&P 500 up 0.6% and the Nasdaq Composite up 1.2%.
Nvidia gained momentum today with the announcement of Stargate, a new joint venture formed by OpenAI, Oracle, and Softbank. Three partners announced they will soon invest $100 billion in U.S. AI infrastructure. This development bodes well for Nvidia.
NVIDIA stock rises as Trump and tech leaders debut Stargate
Yesterday, President Trump welcomed OpenAI CEO Sam Altman, Oracle Chairman Larry Ellison, and SoftBank CEO Masayoshi Son at the White House to announce the Stargate AI infrastructure concept. This joint venture is focusing on the domestic expansion of data centers centered on AI. The project will start with an initial investment of $100 billion and could see investments of up to $500 billion over the next four years.
If there’s one company poised to immediately reap the greatest benefits from Stargate’s infrastructure investments, it’s likely Nvidia. Hardware leader graphics processing units (GPUs) are the recommended hardware for training and running advanced AI applications and have a good chance of generating significant revenue in connection with the Stargate project.
What’s next for Nvidia?
Thanks to its dominant position in GPUs for AI, Nvidia stands to be one of the biggest winners from increased AI infrastructure spending. The company has already recorded impressive revenue and profit growth with the rise of AI, and recent signs suggest that customer demand remains plentiful for processors it can use to strengthen its position in data centers. Suggests.
Earlier this month, Microsoft announced that it plans to spend approximately $80 billion on AI data center infrastructure this year. Microsoft is Nvidia’s largest customer, and its spending guidelines point to strong performance prospects for the GPU leader. With OpenAI, Oracle, and Softbank forming Stargate, Nvidia could soon benefit from another large customer entering the AI data center space.
Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
