AI Stocks Ramp as Trump Admin Commits $100 Billion to "Stargate"

The AI Buildout is at Full Speed AheadA 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 like Microsoft (MSFT) and Alphabet (GOOGL) 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 IndustryDue 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 (TSLA) CEO Elon Musk“Artificial intelligence is entering a “golden age” and it will improve every business, government, and philanthropy.” ~ Former Amazon (AMZN) CEO Jeff BezosUnlike 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 (META) 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 (ORCL), and ARM Holdings (ARM) 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 LineThe 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.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report ARM Holdings PLC Sponsored ADR (ARM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks