Shares of AI-related companies surged Wednesday after the Trump administration’s announcement of a $500 billion joint venture with Oracle (ORCL), OpenAI, and SoftBank spurred optimism about a rising tide of AI investments.
For Oracle, the project could mean “significant revenue opportunity ahead starting potentially this year,” Morgan Stanley analysts told clients Wednesday, with a portion of the companies’ initial $100 billion investment appearing bound for Oracle’s data centers in Abilene, Texas.
The project, known as Stargate, also “reads positively” for Microsoft (MSFT) as a backer for OpenAI and partner for the initiative, the analysts said.
Oracle shares jumped close to 8% in intraday trading Wednesday, extending Tuesday’s gains ahead of the announcement, while Microsoft shares rose nearly 4%.
As key technology partners for the initiative, Nvidia (NVDA) and Arm Holdings (ARM) were also among the companies that saw their shares pop, with Arm shares soaring 15%, and Nvidia climbing close …