Nvidia stock surged 4.4% due to new joint company investing $100 billion in AI infrastructure

From Nasdaq: 2025-01-22 18:13:00

Nvidia stock surged 4.4% on Wednesday after bullish AI news. Stargate, a new joint company backed by OpenAI, Oracle, and Softbank, plans to invest $100 billion in U.S. AI infrastructure. Nvidia stands to benefit due to its GPUs being preferred for advanced AI applications.

At the White House, President Trump announced Stargate’s AI initiative with OpenAI, Oracle, and Softbank. The joint venture will invest $100 billion in AI-focused data centers, with potential for up to $500 billion in the next four years. Nvidia is likely to gain significantly from this infrastructure spending.

Nvidia’s strong position in AI GPUs positions it well to benefit from increased AI infrastructure spending. With Microsoft planning to invest $80 billion in AI data centers, Nvidia, as its largest customer, is set for continued growth. The formation of Stargate by OpenAI, Oracle, and Softbank could further boost Nvidia’s sales.

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Keith Noonan has no positions in the mentioned stocks. The Motley Fool recommends Microsoft, Nvidia, and Oracle, and offers “Double Down” stock alerts. Stock Advisor returns as of January 21, 2025.



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