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Trump Unveils Stargate AI Infrastructure Project: ETFs in Focus

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On Tuesday, former President Donald Trump announced a $500 billion artificial infrastructure (AI) infrastructure initiative, spearheading a new company called Stargate. Initial funding for the project will come from SoftBank (SFTBY), OpenAI, Oracle (ORCL - Free Report) , and UAE-based MGX. The broader tech sector rallied on news of the massive AI investment, with investors optimistic about the transformative potential of the Stargate project.

Stargate identified NVIDIA (NVDA - Free Report) , Microsoft (MSFT - Free Report) , and British chip designer Arm (ARM) as "key initial technology partners" to build U.S.-based data centers to power artificial intelligence advancements. OpenAI revealed that $100 billion would be deployed immediately, with up to $500 billion invested over the next four years.

Tech Stocks Surge Amid AI Optimism

NVIDIA's stock jumped more than 4% on Wednesday, boosting its market cap to $3.6 trillion and reclaiming its position as the world's largest company, ahead of Apple (AAPL - Free Report) . Shares of Microsoft rose over 4%. Shares of Arm surged nearly 16%. The Oracle stock increased by almost 7%. SoftBank shares jumped nearly 11%. Dell (DELL - Free Report) & Super Micro Computer (SMCI - Free Report) shares gained around 4% each, reflecting optimism in AI-related server demand.

Broader Strategic Implications

Wedbush analyst Dan Ives noted that the Stargate initiative marks a pivotal moment in U.S.-China competition over AI dominance. "This is a high-stakes game, and Trump is leveraging AI investments to strengthen U.S. technological leadership," Ives wrote in a note to investors, as quoted on Yahoo Finance. The announcement followed recent Biden administration’s efforts to restrict AI chip exports to China and accelerate domestic data center construction.

AI ETFs in Focus

Hence, investors can keep a close tab on exchange-traded funds (ETFs) like Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) , ROBO Global Robotics & Automation Index ETF (ROBO - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) and First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT - Free Report) .


 

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