Project Stargate potentially adds growth runway for Nvidia beyond 2026, says UBS

Project Stargate, an AI infrastructure project announced Tuesday by the Trump administration that will invest $500B in U.S. infrastructure over the next four years, will feature Softbank (SFTBY) as the lead financial partner and OpenAI as the lead operational partner, UBS tells investors. Initial technology partners are Nvidia (NVDA), Microsoft (MSFT), ARM (ARM), Oracle (ORCL), and OpenAI, and while investors have become increasingly concerned about peak compute demand, this should go a long way to ease these concerns and potentially adding growth runway for Nvidia beyond 2026, the firm says. UBS believes the project will at least initially rely very heavily on Nvidia compute and hardware solutions and notes that AMD (AMD) is absent from all announcements and blog posts. The firm has a Buy rating and $185 price target on Nvidia shares.