In early January, President Donald Trump announced a $500 billion artificial infrastructure (AI) infrastructure initiative, spearheading a new company called Stargate. Stargate identified NVIDIA NVDA, Microsoft MSFT, 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.
U.S. Tech Giants Back UAE Stargate AI Data Center
Apart from NVIDIA, major American technology companies including Cisco, Oracle, and OpenAI are supporting the newly announced “UAE Stargate” artificial intelligence data center, according to multiple sources familiar with the matter, as quoted on CNBC.
NVIDIA to Supply Cutting-Edge AI Hardware
NVIDIA will provide the latest Blackwell GB300 systems for the project, one source confirmed. The company, a global leader in AI chips, will be central to powering the new data center’s infrastructure.
The UAE Stargate initiative will also work in tandem with the U.S. Stargate AI infrastructure project, launched by President Donald Trump shortly after his second-term inauguration in January, the same source said.
Oracle and Cisco Join the Initiative
Oracle ORCL is also participating in UAE Stargate, with sources noting that co-founder Larry Ellison was present at the U.S. Stargate launch. Cisco CSCO, meanwhile, is contributing through executive-level support, including its president Jeetu Patel being present in the UAE, the CNBC article noted.
UAE Stargate to Be Built by G42 in Abu Dhabi
The UAE-based data center will be constructed in Abu Dhabi by Emirati firm G42, according to a statement from the U.S. Commerce Department. The site will be a massive 10-square-mile campus with a planned 5-gigawatt capacity. The first phase will include a 1-gigawatt compute cluster, the Trump administration announced.
Saudi Arabia to Receive 18,000 NVIDIA AI Chips
In a related development, NVIDIA CEO Jensen Huang announced during the Saudi-U.S. Investment Forum in Riyadh that the company would supply 18,000 Blackwell chips to Saudi firm Humain. These chips will be used in Saudi data centers totaling 500 megawatts. AMD will also be providing chips for the project, with Humain committing a staggering $10 billion in investment.
Stocks & ETFs to Win
Against this backdrop, below we highlight the stocks and their related ETFs that are likely to gain on the advancements of the Stargate project.
NVIDIA – Strive U.S. Semiconductor ETF SHOC
Cisco – iShares U.S. Telecommunications ETF IYZ
Oracle – Pacer Data and Digital Revolution ETF TRFK
Microsoft – iShares Global Tech ETF IXN
AMD – iShares Semiconductor ETF SOXX
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Microsoft Corporation (MSFT): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report iShares Semiconductor ETF (SOXX): ETF Research Reports iShares U.S. Telecommunications ETF (IYZ): ETF Research Reports iShares Global Tech ETF (IXN): ETF Research Reports Pacer Data and Digital Revolution ETF (TRFK): ETF Research Reports Strive U.S. Semiconductor ETF (SHOC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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