• Shares of AI-related companies rose on Wednesday after President Trump announced a $500 billion joint venture with Oracle, OpenAI and SoftBank to build AI infrastructure in the US

• As key technology partners for the initiative, Nvidia, Microsoft and Arm saw their shares gain.

• Wedbush analysts said they believe the project could represent “the start of a wave of massive investment in AI,” anticipating more announcements in the coming weeks.
  

Shares of AI-related companies rose on Wednesday after the Trump administration announced a 500 billion dollar joint venture with Oracle (ORCL), OpenAI and SoftBank spurred optimism about a rising tide of AI investments.

For Oracle, the project could mean “a significant revenue opportunity starting this year,” Morgan Stanley analysts told clients on Wednesday, with a portion of the companies’ $100 billion initial investment seems destined for Oracle’s data centers in Abilene, Texas.

The project, known as Stargate, also “reads positively” for Microsoft (MSFT) as a sponsor of OpenAI and a partner in the initiative, analysts said.

Oracle shares rose nearly 8% in intraday trading on Wednesday, extending Tuesday’s gains before the announcement, while Microsoft shares rose nearly 4%.

As key technology partners for the initiative, Nvidia (NVDA) and arms (ARM) were also among the companies that saw their shares rise, with Arm shares rising 15% and Nvidia climbing nearly 5%.

Shares of several Nvidia partners and other companies in the AI ​​chipmaker’s ecosystem, including Dell (DELL), TSMC (TSM), and Hewlett Packard Enterprise (HPE), also won.

Analysts at Wedbush said they believe the project could also represent “the beginning of a wave of massive investments in artificial intelligence to take place in the US”, anticipating more announcements in the coming weeks.

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