TLDR:
- Nvidia stock jumped 4.1% following Trump’s announcement of the $500 billion Stargate AI infrastructure project, pushing its market cap to $3.6 trillion
- Stargate, funded by SoftBank, OpenAI, Oracle, and UAE-based MGX, named Nvidia as a key technology partner with potential to receive over $100 billion in spending
- The initiative aims to build massive US data centers for AI development, with Trump positioning it as crucial for maintaining US leadership over China
- Related tech stocks also rallied: Microsoft (+4%), Arm (+16%), Oracle (+7%), and SoftBank (+11%)
- The announcement comes after Biden’s recent executive orders restricting AI chip exports to China and aims to accelerate US data center construction
Nvidia Corporation (NVDA) stock rose 4.1% in Wednesday trading after President Trump announced Stargate, a $500 billion artificial intelligence infrastructure initiative.
The gains pushed Nvidia’s market capitalization to $3.6 trillion, making it once again the world’s most valuable company, surpassing Apple.
The Stargate project, announced Tuesday at the White House, will create a new company funded initially by SoftBank, OpenAI, Oracle, and UAE-based MGX. The initiative named Nvidia, along with Microsoft and Arm Holdings, as key technology partners in the ambitious plan to construct large-scale data centers across the United States.
OpenAI stated that Stargate would “begin deploying $100 billion immediately” with plans to invest up to $500 billion over the next four years. According to Melius Research analyst Ben Reitzes, Nvidia could receive “well over” $100 billion of this spending, with additional funds flowing to companies like Broadcom and Arista Networks for computing and networking components.

The announcement triggered broader market movements, with Microsoft shares climbing more than 4%, Arm surging nearly 16%, Oracle rising almost 7%, and SoftBank jumping close to 11%. Companies that manufacture servers using Nvidia chips, including Dell and Super Micro Computer, saw gains of around 4%.
Trump described the initiative’s scope during the Tuesday briefing, stating, “Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, and this will include the construction of colossal data centers, very, very massive structures.”
The timing of the announcement follows recent executive orders from the Biden administration aimed at restricting AI chip exports to China while accelerating domestic data center construction. Trump positioned the Stargate initiative as crucial for maintaining US leadership in AI development ahead of China.
The project announcement sparked some controversy on social media, with Elon Musk questioning OpenAI’s financial capability to participate. Responding to OpenAI’s post about Stargate on X, Musk wrote, “They don’t actually have the money.” Reports indicate that OpenAI lost $5 billion in 2024 while generating $3.7 billion in revenue.
For Nvidia investors, the Stargate initiative arrives during a period of focus on the company’s production ramp-up of its new Blackwell chip. The stock had faced pressure in early January after The Information reported that three major customers had canceled some orders for servers using Nvidia Blackwell AI chips.
According to Reitzes, the scale of the Stargate project “makes the next quarter or two seem completely irrelevant.” His analysis suggests that even $20 billion in additional spending on Nvidia products during calendar 2026 would support the company’s growth rate, with up to $40 billion being possible.
Wedbush analyst Dan Ives noted in a Tuesday report that the announcement “comes at a critical juncture as we expect Trump to aggressively court more AI investments in the US.” He characterized the project as “all part of a broader game of high stakes poker with China.”
The U.S. market opportunity for Nvidia could exceed previous expectations, with Reitzes noting that most of the Stargate spending appears to be incremental to existing projections. This development comes despite recent concerns about growth prospects following the Biden administration’s export restrictions.
Nvidia’s stock had already shown strength before the announcement, rising 2.3% in Tuesday trading. The Wednesday gains put shares up nearly 12% from the previous week, marking a recovery from early January pressures.
The project represents the first major AI infrastructure initiative announced by the Trump administration, with analysts suggesting it could signal additional AI-friendly policies ahead.
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