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Shares of many artificial intelligence (AI)-related semiconductor names advanced on Wednesday, including wide (NASDAQ: AVGO), LAM Research (NASDAQ: LRCX)i Monolithic power (NASDAQ: MPWR)which rose 2.6%, 4.1% and 8.5%, respectively, as of 1:12 p.m. ET.
These weren’t the three AI-related chip stocks at the moment, but this group shows a fairly broad spectrum of products, from Broadcom’s AI networking chips to Lam’s etch and deposition equipment for the advanced chip manufacturing, to monolithic AI power modules.
President Donald Trump, who lifted all boats in the industry, had to do with yesterday’s announcement of the Stargate Data Center project by Stargate Data Center and a number of other AI technology companies.
Yesterday, a group of technology companies, incl Oracle, Softbank i openaigathered at the White House to announce Stargate. Stargate is an AI-related joint venture, bringing together these companies and other investors to build next-generation AI infrastructure in the United States.
The announcement may have spurred a rally in AI-related chip stocks because of the financial numbers the group presented. The companies announced an initial investment of $100 billion, but also threw out a figure of $500 million as the potential for future new Stargate expansions over the next four years.
Since none of these companies make their own chips, at least not yet, this impressive number means a lot Nvidia gpu Although, even if Stargate uses mostly NVIDIA GPUs and not custom ASICs, which Broadcom does, Stargate will still likely use Broadcom’s Jericho network routing and switching chips. In addition, all semiconductors and cutting-edge memory and memory currently require intensive deposition and etching steps, which would benefit semiconductor teams in general and LAM research specifically, leading in these crucial categories of chip fabrication.
Meanwhile, these massive data centers require large amounts of power, and monolithic power supplies the 48-volt power management systems used by many AI chip modules. While there has been some debate over whether monolithic power may have lost its dominant share within NVIDIA chip modules, a concern that caused monolithic shares to dive late last year, it would still of retaining a key part of these AI power module systems. In fact, sales analysts a Oppenheimer He just named Monolithic as one of the firm’s best AI stocks for 2025.
While these stocks should rise on news of continued investment, the Stargate announcement by itself shouldn’t be a game changer. After all, the initial $100 billion includes money already spent on an ongoing Texas data center that began last year under the Biden administration. So Stargate doesn’t appear to be a completely new AI cluster, but a simple augmentation of one that was already up and running.
