Stargate AI Project: What AI Stocks Could Benefit in 2025 and Beyond?

Project Overview - The Stargate Project is a $500 billion AI infrastructure initiative in the US, described as the largest AI infrastructure project in history [1] - It is a joint venture between Oracle, SoftBank Group, and OpenAI, with immediate deployment of$100 billion [1][2] - The project involves building 10 massive data centers, each 500,000 square feet, starting in Abilene, Texas, with potential sites across the US being evaluated [2] Companies Involved Oracle - Market cap of $521 billion with a 10.7$28.3 billion in 2022 [5] SoftBank - Market cap of $99 billion with a 14$3.6 trillion with a 35% 5-year annualized EPS growth and a forward P/E of 34.4 [3] - Leading provider of chips and technology for advanced AI capabilities, with GPUs being the gold standard for AI workloads [9] Microsoft - Market cap of $3.3 trillion with a 13.7$13 billion investment in OpenAI [10] Arm Holdings - Market cap of $175 billion with a 26.5% 5-year annualized EPS growth and a forward P/E of 84.0 [3] - Largest designer of CPU chip architectures, with growth driven by the AI data center market [11] Project Responsibilities - SoftBank has financial responsibility, while OpenAI has operational responsibility, with SoftBank's Son as chairman [6] - Key initial technology partners include Oracle, OpenAI, Nvidia, and Microsoft [6] Stock Performance - Nvidia has the highest projected earnings growth rate at 35% over the next five years, with a reasonable stock valuation of 34.4 times forward earnings [12] - Oracle and Microsoft are considered lower risk compared to Nvidia [12]