Technology stocks rose after Trump announced the $500 billion Stargate AI project

nvidia (NVDA) The stock jumped more than 4% on Wednesday to help lead the technology sector and some chip stocks higher after Trump announced a massive $500 billion artificial intelligence infrastructure project.

The project is creating a company called Stargate, which will initially be funded by SoftBank (SFTP), OpenAI, Oracle (ORCL), and MGX, based in the United Arab Emirates.

Stargate bears Nvidia’s name, alongside Microsoft (MSFT) and British chip designer Arm (arm), as “key initial technology partners” for the project, which aims to build US data centers needed to power artificial intelligence. OpenAI said Stargate “will begin deploying $100 billion immediately” and will invest up to $500 billion over the next four years.

Nvidia’s gains on Wednesday pushed its market value to $3.6 trillion, making it the world’s largest company again after Apple.Apple).

Meanwhile, Microsoft shares rose about 4% early Wednesday, while ARM shares rose more than 14%. Oracle stock rose 7%, and SoftBank stock jumped more than 10%.

“Stargate will build the physical and virtual infrastructure to power the next generation of advances in artificial intelligence, and this will include building massive data centers, very massive structures.” Trump said in a press conference Tuesday. “These buildings, these big, beautiful buildings are going to employ a lot of people.”

Trump said the effort aims to maintain the United States’ lead in developing artificial intelligence ahead of China.

This announcement comes after a large number of… Executive orders from the Biden administration on artificial intelligence last week with the aim of restricting the flow of artificial intelligence chips to China and accelerating the construction of data centers in the United States.

“This comes at a critical juncture as we expect Trump to aggressively seek to attract more AI investment in the United States,” Wedbush analyst Dan Ives wrote in a note to investors late Tuesday. Ives noted that the project “is part of a broader game of high-stakes poker with China.”

After the announcement, Elon Musk targeted OpenAI On his social media platform

OpenAI It is estimated that it lost $5 billion In 2024, however It generated revenue of only $3.7 billion.

Technology stocks rose across the board following news of major investment in artificial intelligence. del(Dale) and super micro computer (SMCI), which makes servers using Nvidia chips, increased by about 4%.

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laubratton.bsky.social. Email her at [email protected].

Click here for the latest stock market news and in-depth analysis, including stock-moving events

Read the latest financial and business news from Yahoo Finance