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AI Stocks Ramp Up as Trump Commits $100B to "Stargate"
The AI Buildout Is Full Speed Ahead
A short time ago, ChatGPT, the first mainstream artificial intelligence-powered Chatbot debuted and became the fastest-growing consumer application in history. Fast-forward to today, and ChatGPT’s immediate and massive success, coupled with its mindboggling and wide-ranging capabilities, has sparked a snowballing effect of unprecedented investment in the artificial intelligence industry and the tech space in general.
Big tech, “Magnificent 7” companies have the perfect elixir to cash in on the AI buildout because they are flush with cash and looking to grow earnings to keep up with their ever-expanding valuations.
AI Will Disrupt Every Industry
Due to fierce competition and competitiveness, the world’s brightest technology minds are seldom on the same page and are often at odds with each other. Nevertheless, there is one thing they all seem to agree on – the idea that artificial intelligence will be the next big thing.
“The pace of progress in artificial intelligence is incredibly fast. Unless you have direct exposure to groups like DeepMind, you have no idea how fast – it is growing at a pace3 close to exponential.”~ Tesla CEO Elon Musk
“Artificial intelligence is entering a “golden age” and it will improve every business, government, and philanthropy.”~ Former Amazon CEO Jeff Bezos
Unlike his first time in the Oval Office, returning President Donald Trump now has the brightest tech minds on his side. Bezos, Musk, and Meta Platforms CEO Mark Zuckerberg attended Trump’s inauguration, for example.
A “Stargate” Announcement is Imminent
“Stargate” is a $100 billion long-term joint venture between Microsoft and ChatGPT parent OpenAI working on a next-generation “AI supercomputer data center. The technology could be the key to the US keeping its AI edge over its global competitors like technology.
Thus, in the first few hours of his presidency, it appears that the Trump administration will announce a $100 billion initial commitment to Stargate that could scale fivefold in the next four years. President Trump will address the matter around 4 pm EST tonight, but MSFT, Oracle and ARM Holdings are reportedly involved in the meeting and could move as a result. Investors should also pay attention to “pick and shovel” plays like data center infrastructure and energy stocks.
Bottom Line
The Trump administration will likely announce a strategic commitment to Stargate, a next-generation AI supercomputer data center. The news could be a bullish catalyst for AI-related stocks.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights Tesla, Amazon, Meta, Oracle and ARM Holdings
For Immediate Release
Chicago, IL – January 22, 2025 – Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) , Amazon (AMZN - Free Report) , Meta Platforms (META - Free Report) , Oracle (ORCL - Free Report) and ARM Holdings (ARM - Free Report) .
AI Stocks Ramp Up as Trump Commits $100B to "Stargate"
The AI Buildout Is Full Speed Ahead
A short time ago, ChatGPT, the first mainstream artificial intelligence-powered Chatbot debuted and became the fastest-growing consumer application in history. Fast-forward to today, and ChatGPT’s immediate and massive success, coupled with its mindboggling and wide-ranging capabilities, has sparked a snowballing effect of unprecedented investment in the artificial intelligence industry and the tech space in general.
Big tech, “Magnificent 7” companies have the perfect elixir to cash in on the AI buildout because they are flush with cash and looking to grow earnings to keep up with their ever-expanding valuations.
AI Will Disrupt Every Industry
Due to fierce competition and competitiveness, the world’s brightest technology minds are seldom on the same page and are often at odds with each other. Nevertheless, there is one thing they all seem to agree on – the idea that artificial intelligence will be the next big thing.
“The pace of progress in artificial intelligence is incredibly fast. Unless you have direct exposure to groups like DeepMind, you have no idea how fast – it is growing at a pace3 close to exponential.”~ Tesla CEO Elon Musk
“Artificial intelligence is entering a “golden age” and it will improve every business, government, and philanthropy.”~ Former Amazon CEO Jeff Bezos
Unlike his first time in the Oval Office, returning President Donald Trump now has the brightest tech minds on his side. Bezos, Musk, and Meta Platforms CEO Mark Zuckerberg attended Trump’s inauguration, for example.
A “Stargate” Announcement is Imminent
“Stargate” is a $100 billion long-term joint venture between Microsoft and ChatGPT parent OpenAI working on a next-generation “AI supercomputer data center. The technology could be the key to the US keeping its AI edge over its global competitors like technology.
Thus, in the first few hours of his presidency, it appears that the Trump administration will announce a $100 billion initial commitment to Stargate that could scale fivefold in the next four years. President Trump will address the matter around 4 pm EST tonight, but MSFT, Oracle and ARM Holdings are reportedly involved in the meeting and could move as a result. Investors should also pay attention to “pick and shovel” plays like data center infrastructure and energy stocks.
Bottom Line
The Trump administration will likely announce a strategic commitment to Stargate, a next-generation AI supercomputer data center. The news could be a bullish catalyst for AI-related stocks.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.