In the first few days of his second term as president, Donald Trump has been quite busy, signing a flurry of executive orders and announcing several new policies. Many have captivated the mainstream media’s attention, for various reasons. But to us, one major initiative stands out as the most important for the U.S. economy and stock market: the Stargate AI project.
Stargate is a joint venture between the White House, OpenAI (the world’s largest AI startup), Oracle (ORCL) (one of the world’s largest AI data center operators), and SoftBank (SFTBY) (the world’s largest tech investment firm). The goal? To solidify the U.S. as the unrivaled AI capital of the world.
Collectively, the four entities plan to invest up to $500 billion over the next four years to develop advanced AI infrastructure in the United States. This includes the construction of data centers and energy systems to support the development of advanced AI models, with the ultimate hope of achieving Artificial General Intelligence (AGI) – AI’s “holy grail.” If successful, we will unlock the level of artificial intelligence that, broadly speaking, is better than human beings at nearly everything.
Needless to say, this is a big deal. It could easily transform the U.S. tech industry over the coming years… and send certain AI stocks soaring over the next 12 months!
Stargate: The 21st Century’s Own Manhattan Project
Just this morning, I was texting a friend about this recently announced AI initiative. He called it a new Manhattan Project; and I couldn’t agree more with that sentiment.
For those unfamiliar, the Manhattan Project was a World War II-era effort “to translate the vast energy released by atomic fission into a weapon of unprecedented power,” as noted by the National Archives.
In other words, it was all about dedicating an enormous amount of resources to harness the most powerful form of energy of the time – nuclear fission. Similarly, present-day’s Stargate is all about dedicating an enormous amount of resources to harnessing the most powerful technological breakthrough of our time – AI.
With the world’s first atomic bomb in its possession, the Manhattan Project cemented the U.S. as an indomitable global superpower.
We think Stargate could do the same.
Of course, one could argue that the biggest obstacle to developing advanced AI has been a supply shortage. That’s because, put simply, AI models require a ton of energy and computing capacity. And we currently don’t have enough of either to truly advance the tech to its highest potential.
But… if we develop the foundational support necessary, we would theoretically give developers the resources they need to create the next generation of AI products and services.
That is exactly what Stargate aims to do.
Next-Gen AI Is Already on the Way
By funneling $500 billion into the industry, America’s leading tech companies – like OpenAI – can create the next generation of super-powered AI models.
If successful, that would change the global economy forever. It would truly usher us into the Age of AI, with America leading the charge.
But this is more than just a proposition. Trump’s Stargate project is already underway.
Indeed, the first phase of development is already in motion. The group announced that it will begin deploying the project’s first $100 billion immediately. It appears the first step involves Oracle leasing a 200-megawatt data center in the central-Texas town of Abilene. That is expected to be the first of multiple new Texas-based data centers to come online quickly over the next several months.
In other words, the 21st Century’s own Manhattan Project is already underway – and you need to start investing in it now.
What’s the best way to do that?
AI Builder stocks.
The Final Word on the Stargate Initiative
We like to segment AI stocks into two categories: ‘Builders’ and ‘Appliers.’
As you might infer, the Builders develop the foundations necessary to create advanced AI. Think things like data centers, chip fabs, and energy infrastructure. Then the Appliers use that new infrastructure to create advanced AI models.
Stargate’s first phase is centered on the Builders. It’s all about pumping tens of billions of dollars into creating new AI data centers, chip fabs, and energy infrastructure. It should provide direct and significant tailwinds for AI Builder stocks.
That’s why after Stargate was announced, AI Builder stocks began to soar. The very next day, AI chipmaker Nvidia (NVDA) jumped about 5%, while AI chip designer Arm (ARM) popped about 15%. Other AI Builder stocks – like cooling equipment provider Vertiv (VRT), chip design firm Lam Research (LRCX), and semiconductor manufacturing equipment provider Applied Materials (AMAT) – also rallied on the news.
We think AI Builder stocks like those are set to keep rallying for the foreseeable future. With Stargate officially underway, most of these stocks should do really well in 2025.
We also think that, despite his initial reaction, Stargate should benefit Elon Musk and his AI startup, xAI. Thanks to the increased computing power we’re likely soon to see, xAI should be able to develop more advanced AI models.
Not to mention, xAI seems set to benefit strongly this year thanks to Musk’s close proximity to President Trump.
That’s why we’ve dug in to find some great “backdoor” ways to invest in the startup.
Learn more about that lesser-known investment opportunity now, before the surge begins.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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