Nvidia (NASDAQ:NVDA) may not have been among the speakers celebrating the launch of Project Stargate, a $500 billion AI public-private initiative announced just hours after Trump 2.0 launches But the spirit of the AI chip giant was certainly there.
According to President Trump, the project will be “the largest AI infrastructure project in history.” The president will be flanked by leaders from Oracle, OpenAI, and SoftBank, all of which will fund the initiative, which will ultimately create up to 20 AI data centers across the United States over the next few years. may be constructed.
To almost no one’s surprise, NVDA was named as one of the lead technology partners for this effort. The undisputed data center leader will work with Oracle and OpenAI to build and operate Stargate’s computing systems.
The investor, known by the pseudonym Value Edge, is enthusiastic about Nvidia’s prospects arising from this new partnership, saying the company is the “obvious” beneficiary of Project Stargate.
“The major winners of this result should come as no surprise,” the investor asserts. “NVIDIA is already a leader in AI hardware, including GPUs and networking equipment, and only a handful of companies come close.”
Value Edge also praised the Trump administration’s AI efforts through both policy support and financial support. In investors’ view, Project Stargate highlights that AI is a “key strategic priority” for the current administration.
Additionally, Value Edge notes that Stargate allays concerns about trade restrictions affecting global AI businesses, stating that “Western demand more than makes up for lost sales due to increasingly stringent export controls.” “This strongly suggests that.”
From a technical perspective, NVDA has a clear advantage in the market thanks to its CUDA ecosystem, giving it a leg up on competitors such as AMD and Intel. The investor believes that Nvidia’s upcoming Blackwell architecture will only strengthen its position as a leader in the AI hardware and software market.
Additionally, ValueEdge believes Stargate can offset the threat posed by custom chips that hyperscalers have been pursuing. Megatech companies may continue to invest in proprietary chip designs, but investors argue that fears of being overtaken by OpenAI are likely to drive sustained demand for NVIDIA’s cutting-edge solutions. I am doing it.
“Just five words are enough to summarize NVIDIA’s current investment case: It’s good to be king,” the investor concludes. With these strong statements, Value Edge remains bullish, giving NVIDIA stock an overwhelming Buy rating. (Click here to see ValueEdge’s track record)
Wall Street seems similarly bullish. With 36 buy recommendations and 3 hold recommendations, Nvidia boasts a consensus Strong Buy rating. Analysts have predicted an average 12-month price target of $176.86, reflecting ~24% upside potential. (See NVDA stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
