Oracle stock surged Wednesday, as other AI stocks rallied, after President Donald Trump unveiled the Stargate AI infrastructure project with OpenAI and SoftBank.
President Trump led a press conference with OpenAI Chief Executive Sam Altman, Oracle Chairman Larry Ellison and SoftBank Chief Executive Masayoshi Son in announcing the major technology initiative.
The Stargate project calls for $100 billion in initial investment and plans for up to $500 billion over the next four years to build AI infrastructure. SoftBank, OpenAI, Oracle, and MGX are the initial equity funders. Arm, Microsoft, Nvidia are technology partners. The project includes a data center already underway in Texas, according to the announcement.
Trump called it "the largest AI infrastructure project, by far, in history."
On the stock market today, Oracle stock gained 6.8% to close at 184.22. The stock soared above its 50-day moving average. Oracle stock has now gained for six straight trading days, its longest streak since August 2024, according to Dow Jones Market Data.
Trump Praise Could Boost Oracle Stock
Wedbush analyst Dan Ives wrote to clients that Stargate represents "the start of a wave of massive AI investments to take place in the U.S. as we expect more big tech players to make announcements over the coming weeks."
Ives added that he expects "Trump to aggressively court more AI investments in the U.S. with the China tariff negotiations in the background all part of a broader game of high stakes poker with China. As Project Stargate takes hold this is bullish for the likes of Palantir, Microsoft, Oracle, Dell, Amazon, Google and a host of other players."
During the press conference, Trump praised Oracle's Ellison as "CEO of everything. He's an amazing man and an amazing business person." Ellison, 80, founded Oracle in 1977 and stepped down as Oracle chief executive in 2014. But he remains the database software company's most prominent leader as chairman and chief technology officer.
Evercore ISI analyst Kirk Materne wrote Wednesday that the "fundamental impact" from Stargate for Oracle stock remains to be seem. But the announcement highlights the opportunities for Oracle to work with Trump.
"Based on President's Trumps comments yesterday, it is quite clear that Oracle is well positioned to have a seat at the table as it relates to some of the current administration's efforts (such as) the build out of AI and other digital initiatives related to driving greater efficiency across the government," Materne wrote.
Oracle stock rallied by nearly 60% in 2024, its best year since 1999. Shares soared as Oracle's cloud infrastructure business attracted AI startups that need cloud computing power.
Bur Oracle stock has pulled back in recent weeks from a high of 198.31 reached on Dec. 9. Oracle's fiscal Q2 earnings report that same day missed expectations for earnings and sales, setting off the recent slump.
