Oracle’s Shares Soar 9% as Trump Announces $500 Billion AI Venture
Oracle’s shares jumped nearly 9% at the opening of trading on Wednesday after US President Donald Trump announced a massive investment in artificial intelligence infrastructure. The joint venture, called Stargate, will invest $500 billion to stay ahead of rival nations, including China, in the global AI race. The initial investment of $100 billion will be deployed immediately, with the remaining $400 billion to be invested over the next four years.
The venture has already started construction on its first data centers in Texas, and its tech partners, including Nvidia, Microsoft, and Arm, also saw gains in their stock prices. Nvidia, which will supply chips for the venture, saw its shares rise 2.7%, while Microsoft and Arm climbed 1.1% and 5.5%, respectively.
AI requires vast amounts of energy to drive its immense computing power, which drives demand for specialized data centers and electricity to power them. As a result, nuclear power company Vistra’s stock rose 3.8%, following a surge of over 400% in the past 12 months, partly due to the increasing demand for clean, sustainable energy for data centers.
Other AI-related stocks also saw gains, including AI server makers Dell Technologies and Super Micro Computer, which rose 4.3% and 2.7%, respectively, while AI data analytics firm Palantir Technologies increased 2.2%. Oracle’s shares closed about 7% higher on Tuesday, boosted by reports of the joint venture.
