Market Reaction - Shares of AI-related companies surged following the announcement of a $500 billion joint venture involving Oracle, OpenAI, and SoftBank, driven by optimism around increased AI investments [1][5] - Oracle shares jumped close to 8% in intraday trading, while Microsoft shares rose nearly 4% [3] - Arm Holdings shares soared 15%, and Nvidia climbed close to 5% as key technology partners for the initiative [3] - Shares of Nvidia partners and other companies in the AI ecosystem, including Dell, TSMC, and Hewlett Packard Enterprise, also gained [4] Project Details - The joint venture, named Stargate, aims to build AI infrastructure in the US with an initial investment of $100 billion, a portion of which is expected to go to Oracle's data centers in Abilene, Texas [2] - The project is seen as a significant revenue opportunity for Oracle, potentially starting this year [2] - Microsoft is viewed positively as a backer for OpenAI and a partner in the initiative [2] Industry Outlook - The Stargate project is anticipated to mark the beginning of a wave of massive AI investments in the US, with more announcements expected in the coming weeks [4][5] - The initiative highlights the growing importance of AI infrastructure and the role of key technology partners like Nvidia, Microsoft, and Arm in driving innovation [3][5]
Why Nvidia, Microsoft, Oracle, Arm, and Other AI Stocks Are Surging Wednesday
Microsoft(MSFT) Investopedia·2025-01-22 19:05