3 Potential AI Stock Winners From the $500 Billion Stargate Project

If there was a fear that spending on artificial intelligence (AI) infrastructure was going to slow down, it was rested when President Donald Trump announced a new Star Gate AI plan last week. Openi -backed, Orange (Orak -0.42 %JesAnd of Japan Soft BankConsortium plans to spend $ 500 billion in building data centers over the next four years to help handle the growing AI’s growing burden.

Consortium initially plans to build 10 data centers and then extend to 20. Oracle Chairman Larry Allison said the construction of the data center is already underway, the first set to be built in the city of Abelin, Texas. The Soft Bank is an important financial supporter, which will immediately deploy 100 billion Billion.

Oracle said in the announcement of the project, nvidia (Nvda 1.71 %JesAnd will cooperate to build and operate the computing system of the open venture, while Openi will be responsible for monitoring the project.

With such a big project, let’s look at the three potential AI winners from this project.

1. Nvidia

Nvidia will undoubtedly be the biggest winner of the Star Gate Project. The company will be involved in the construction of the computing system of data centers, which is no doubt that NVIDIA’s graphic processing units (GPUs) will be fully involved. With a 90 % market share in the GPU’s place and an important role in the project, it will likely be the only GPU provider for these data centers.

In the past, when Microsoft Talking about the costs of its Capex (capital costs) on AI, it has said that almost Half leads to assets with half -long practical life (for example land and buildings), while the rest half g The PU and the CPU leads to the Central Processing Unit. Server this way, it shows that many costs of the project will go to the NVIDIA’s GPUS.

Star Gate can also promote more AI data center investment for other major tech companies. Microsoft, which is the largest user of Nvidia, has already announced that he will spend Billion 80 billion on AI data centers, while Meta Platform It has just been announced that it will spend $ 65 billion this year on the AI ​​infrastructure.

The AI ​​race is getting heated, and NVIDIA looks like the biggest beneficiary. Meanwhile, the appropriate price of stock is traded, which trades on a forward price-to-the-to-Tot-Top income ratio of only 32.5 analysts based on 2025 analysts and increasing ratio of 1 price/income of 1 (PEG ) Under the age of 1 is generally considered low price, but the growth stock often commands the poles above 1.

2. Oracle

As part of the consortium behind the Star Gate, with Oracle, the company is trying to raise itself in the cloud computing space. This cloud computing market is a fifth in the market share, with only 3 %. This is behind three large cloud computing companies. Amazon (31 % market share), Microsoft (20 %), and Alphabet (12 %) – and China’s trail Aliba (4 %) too.

However, Oracle Cloud is seeing strong growth in the computing space. In the last quarter, its cloud revenue increased by 24 % to $ 5.9 billion during the year, with cloud infrastructure revenue increased by 52 % to $ 2.4 billion and cloud application revenue increased by 10 % to $ 3.5 billion. Its Oracle Cloud Infrastructure (OCI) consumption has increased by 52 %, while GPU consumption has increased by 336 %.

He was proud that the OCI is faster and less expensive than other cloud networks and is training the world’s most important generative AI models. The company also noted that its users include Openi, Z, Kohar and Meta Platform.

One of the benefits of Oracle in the cloud computing space is that its data centers are relatively new. It also has multi -cloud agreements with Big Three Cloud Computing companies, allowing users to use their services with multiple cloud providers in the same environment.

Although its cloud business is performing well, the Star Gate company represents a huge opportunity to increase revenue. Even despite the first data center under construction, it will take time before construction and then the ramp up. Thus, expect it to start becoming a huge developing driver in a couple of years. Morgan Stanley It is estimated that the first data center can increase the annual income by $ 10 billion at the end of the fiscal year 2027 (at the end of May 2027).

3. Taiwan semiconductor manufacturing (TSMC)

Although the Star Gate Project is not included, more data center costs mean more advanced chips need, which means Taiwan semiconductor manufacturing (tsm 2.13 %JesOr briefly TSMC, once again taking advantage of. The company is the world’s largest semiconductor contract manufacturer and is the primary manufacturer of NVIDIA’s GPUS.

With its rivals Intel And Samsung Struggling, TSMC is promoted. Its power in 3 nanomometers and 5 nanomometer technologies makes him a controversial leader in high -performance computing. In Q4, its income increased by 37 %.

The company’s leadership status has also provided it with a strong pricing power. It has allegedly increased its services prices once again this year. It has also led to an extension of the overall margin, with its total margin increasing the number of 600 points during the year, which has increased by 59 % over the year.

Between Star Gate, Microsoft, and Meta’s AI Infrastructure costs, TSMC’s chipmost services will be very demanding in the future. It is expected to continue to grow stronger in the coming years as the company increases its manufacturing capacity.

The stock also trades on an attractive diagnosis, which is an estimate of the 2025 analyst’s estimates, with an estimate of 2525.