The White House's announcement of the Stargate project, a joint venture between Softbank, Oracle, and OpenAI, has sparked excitement in Wall Street. The $500 billion investment in U.S. AI infrastructure is expected to benefit a range of companies, particularly those involved in AI technology, computing hardware, and construction.
The 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 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 announcement 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
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