Nvidia and Tech Stocks Surge on Trump's Massive AI Infrastructure Project
Nvidia (NVDA) stock soared over 4% on Wednesday, extending gains following President Trump's announcement of a $500 billion AI infrastructure project.
Dubbed "Stargate," the project aims to develop US data centers for artificial intelligence applications. OpenAI, the project's key technology partner, has named Nvidia as a key contributor.
Stargate plans to invest up to $500 billion over four years. This news has boosted the market cap of Nvidia to $3.58 trillion, surpassing Apple's $3.35 trillion.
Other tech stocks also rallied, including Microsoft (MSFT), Arm (ARM), Oracle (ORCL), and SoftBank (SFTBF). Dell (DELL) and Super Micro Computer (SMCI) rose significantly.
The announcement comes amidst the Biden administration's focus on AI, including efforts to restrict AI chip exports to China. Analysts see this project as part of a broader strategy to maintain US dominance in AI development.
Despite concerns about overheated chips and order cancellations, Nvidia's stock has gained over 11% since last week. The investment surge in AI technology is boosting tech stocks across the board.