Several semiconductor makers should reap the biggest rewards from President Donald Trump’s Stargate artificial intelligence initiative, tech analysts say. The project — a $500-billion joint venture backed by Oracle , OpenAI and SoftBank — aims to build up AI infrastructure in the U.S. over the next four years. Many on Wall Street expect the project to reward the entire technology industry, supporting inference, training, semiconductor and grid infrastructure growth. ORCL 5D mountain Oracle shares over the last five trading days Beneficiaries will include Nvidia , Broadcom and Credo Technology in the GPU/custom silicon area; Arm Holdings in key chip intellectual property; and Micron Technology in high-bandwidth memory products, wrote Mizuho Securities analyst Vijay Rakesh. The firm views Broadcom as one the biggest winners, estimating that its new Trainium platform could grow its serviceable addressable market to between $60 billion and $90 billion, from $20 billion in 2024. Broadcom should also benefit from owning intellectual property rights for chip architecture, software and packaging. “We assume ~ $40-50B incremental of the ~$500B spend by 2027-28E from OpenAI could be on custom silicon (AVGO) as we move later into the project timeline as AVGO continues to develop its own chip,” Rakesh wrote, referring to Broadcom by its ticker symbol. Beyond Broadcom, Rakesh views Credo and Micron Technology as also profiting from Stargate, citing connectivity and storage needs. Arm stands to gain from an estimated $150-$200 million a year of royalty revenue from graphics processing units and networking designs. Still in all, even as other companies make strides, Rakesh continues to expect Nvidia to hold onto its leading position as an AI chip supplier.
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