Nvidia (NASDAQ:NVDA) may not have been among the speakers celebrating the launch of Project Stargate – a $500 billion AI public-private initiative unveiled mere hours into Trump 2.0 – but the spirit of the AI chip giant was certainly present.
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According to President Trump, the project is slated to be the “largest AI infrastructure project in history.” The president was flanked by leadership from Oracle, OpenAI, and SoftBank, all of whom will be contributing funds to the initiative, which may eventually result in up to 20 AI data centers across the U.S. in the coming years.
Surprising practically nobody, NVDA has been named as one of the main technological partners of this effort. The undisputed data center leader will be working with Oracle and OpenAI to build and operate the computing system for Stargate.
Describing the company as an “obvious” beneficiary of Project Stargate, an investor known by the pseudonym Value Edge is gung-ho on Nvidia’s prospects arising from this new partnership.
“The key winner from this should be unsurprising,” the investor asserts. “Nvidia is already the leader in AI hardware, including GPUs and networking equipment, and only a handful of companies are even remotely close.”
Value Edge also praised the Trump administration’s commitment to AI, both through policy support and financial backing. In the investor’s view, Project Stargate underscores that AI is a “key strategic priority” for the current administration.
Moreover, Value Edge noted that Stargate mitigates concerns about trade restrictions impacting global AI businesses, as “it strongly suggests that Western demand will more than make up for sales lost through increasingly stringent export regulations.”
From a technological standpoint, NVDA has a clear primacy in the market thanks to its CUDA ecosystem, which remains unmatched by competitors like AMD or Intel. The investor believes Nvidia’s upcoming Blackwell architecture will only strengthen its leadership position in the AI hardware and software markets.
Additionally, Value Edge believes that Stargate will offset the threat posed by custom chips that hyperscalers have been pursuing. While megatech firms may continue investing in proprietary chip designs, the investor argues that fears of being outpaced by OpenAI will likely drive sustained demand for Nvidia’s cutting-edge solutions.
“One needs only five words to sum up the current investment case for Nvidia: It’s good to be king,” concludes the investor. With such a robust statement, Value Edge remains bullish, giving Nvidia shares a resounding Buy rating. (To watch Value Edge’s track record, click here)
Wall Street appears just as bullish. With 36 Buy and 3 Hold recommendations, Nvidia boasts a consensus Strong Buy rating. Analysts project a 12-month average price target of $176.86, reflecting an upside potential of ~24%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
