Project Stargate might just be the start of something big.
Nvidia has seen remarkable growth recently. Over the past two years, its stock price has increased more than seven times, making it the most valuable company in the world by market capitalization. On Wednesday, the stock climbed as much as 4.7%, continuing to show strength as interest in artificial intelligence (AI) rises.
The growth in AI is driving Nvidia’s success, and a new initiative from the U.S. government could pave the way for even more opportunities.
Recently, the Trump administration announced Stargate. This project aims to boost AI infrastructure in the U.S. It involves a partnership with companies like Oracle, OpenAI, and SoftBank, planning to invest up to $500 billion over the next four years. The focus is on increasing the number of data centers in the country and the energy necessary to support them.
Key players in this initiative include Nvidia, Microsoft, and Arm Holdings. Nvidia is a leader in the field, having developed the graphics processing units (GPUs) that power most AI systems. They hold an impressive 98% share of the data center GPU market in both 2022 and 2023. Analysts expect Nvidia to maintain its dominance in the coming years.
While some investors may think it’s too late to invest in Nvidia, the new developments suggest otherwise. The stock is currently trading at just 32 times next year’s expected sales, a reasonable price considering the growth potential ahead.
With these promising signs, Nvidia stock still presents a solid investment opportunity.