In what is expected to be a significant boost to the U.S. artificial intelligence sector, President Trump is set to announce a massive private-sector investment, according to CBS News. The initiative, which is expected to be worth billions of dollars, will focus on building AI infrastructure across the United States and includes a joint venture called Stargate, which is a collaboration between Microsoft-backed OpenAI (MSFT), Softbank (SFTBY), and Oracle (ORCL). As a result, shares of ORCL and SFTBY surged by more than 6% and 4% respectively, at the time of writing.
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The project will begin with a data center in Texas and expand to other states in the future. Executives from the companies, including SoftBank CEO Masayoshi Son, OpenAI’s Sam Altman, and Oracle co-founder Larry Ellison, are expected to commit an initial $100 billion to Stargate. In addition, the amount invested could potentially increase to as much as $500 billion over the next four years as other companies join. This investment is expected to drive innovation and solidify the U.S.’ position as a leader in AI technology.
Which Stargate Stock Has the Most Upside Potential?
Turning to Wall Street, out of the three stocks mentioned above, analysts think that MSFT stock has the most room to run. In fact, MSFT’s average price target of $507.12 per share implies more than 18% upside potential. On the other hand, analysts expect the least from SFTBY stock, as its average price target of $32.20 equates to a gain of just 4.8%.
