What is this $500 billion AI plan?

US President Trump announced the AI program "Stargate", with a total investment of US$500 billion, led by Oracle (ORCL), OpenAI and Japan's Softbank. The plan aims to consolidate the United States 'position in the global AI race, especially under the pressure of technological competition from China.

The first batch of planned funds is US$100 billion and will be immediately invested in data center construction, AI computing capabilities enhancement and related infrastructure development. The remaining funds will be invested in batches over the next four years to continue to promote long-term development. At present, the construction of the first batch of data centers has been launched in Texas, showing that this is an immediate implementation plan.

Trump emphasized in a White House statement that this plan is not only a technological breakthrough, but also a "global competitive war" with the goal of giving the United States a "far lead" in AI infrastructure.

Why did Oracle's share price perform so well?

As one of the core promoters of this AI plan, Oracle's market performance was immediately stimulated. Its share price rose nearly 9% in pre-market trading after the announcement, and eventually closed up about 7%. Investors are optimistic that Oracle, as an important participant in AI infrastructure, will gain stable market share and long-term returns in the future.

Wedbush analyst Dan Ives pointed out that this plan represents the imminent wave of large-scale AI investment in the United States, and Oracle, as one of the main participants, is undoubtedly one of the most direct beneficiaries. The market also expects that with the deepening of this plan, Oracle's revenue structure will shift from traditional business to AI infrastructure, with considerable room for future growth.

How did other AI-related stocks perform?

Nvidia (NVDA) shares rose 2.7% as it will provide chips dedicated to AI computing for the program, demonstrating market confidence in the demand for high-performance chips. In addition, Microsoft (MSFT) and Arm rose 1.1% and 5.5% respectively, showing solid performance.

Server manufacturers also benefited from the plan, with Dell and SMCI rising 4.3% and 2.7% respectively. With the surge in infrastructure demand for AI data centers, these companies are expected to increase significantly in future order volumes.

AI data analysis company Palantir (PLTR) also rose 2.2%, indicating the market's high expectations for AI service-related industry chains.

Why do energy companies benefit?

The large-scale data centers needed for AI computing require a stable and clean energy supply, making nuclear power company Vistra (VST) a big beneficiary. Vistra shares rose 3.8%, soaring more than fourfold in the past 12 months, highlighting the market's demand for clean energy in data center applications.

Due to the high-energy consumption characteristics of AI computing, the market expects that more data centers will switch to using renewable energy or nuclear energy in the future to meet the requirements of energy efficiency and environmental protection policies. This provides new growth momentum for energy companies, especially nuclear energy suppliers.

What is the future trend of the market?

Wedbush analyst Dan Ives believes that this $500 billion AI plan is just the starting point of a wave of AI investment in the United States. In the coming weeks, more technology giants may announce similar plans one after another, including expanding investment in AI infrastructure and the development of new technologies. This is very good news for the technology sector. In particular, companies closely related to AI infrastructure, such as chip manufacturers, data center service providers, server suppliers, etc., may become the focus of the market in the next few years, and investment opportunities should not be missed.