American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Trump’s $500 billion AI initiative will benefit these 3 chip stocks other than Nvidia

by admin January 28, 2025
January 28, 2025
Trump’s $500 billion AI initiative will benefit these 3 chip stocks other than Nvidia

US President Donald Trump has announced a $500 billion artificial intelligence initiative dubbed Stargate in collaboration with Oracle, SoftBank, and OpenAI.

While the joint venture will enable Nvidia to retain its leadership position in the AI market, a number of other chip stocks could benefit as the aforementioned project comes through as well.

These include Broadcom, Micron, and Arm Holdings, according to Mizuho analyst Vijay Rakesh.

Broadcom Inc (NASDAQ: AVGO)

Mizuho analyst expects Broadcom to emerge as a major beneficiary of Stargate.

Trump’s artificial intelligence project, he’s convinced, could lift the demand for AVGO products and help expand its serviceable addressable market in AI.

Broadcom is focused on building its own chip that makes it fairly positioned to benefit from the joint venture as “$40-50B incremental of the $500B spend by 2027-28E from OpenAI could be on custom silicon as we move later into the project timeline” Rakesh argued in a recent report.

Additionally, Broadcom could benefit as Meta Platforms delivers on its promise of spending more on artificial intelligence in 2025. Note that AVGO shares have well over doubled since the start of 2024.

Micron Technology Inc (NASDAQ: MU)

Vijay Rakesh sees Micron benefitting from the aforementioned AI joint venture as it could meaningfully increase the demand for connectivity and storage over the next few years.

Stargate’s focus on building massive data centres as part of its broader commitment to advancing AI technologies could unlock substantial demand for high-performance memory components.

That’s where Micron Technology that’s up nearly 20% year-to-date steps in.

It will likely play a key role as a supplier of the required hardware that powers the said artificial intelligence initiative. Additionally, investors should own MU shares in 2025 for a 0.45% dividend yield as well, according to the Mizuho analyst.

Arm Holdings Plc (NASDAQ: ARM)

Arm has inched down in recent sessions but Mizuho dubs the weakness an opportunity to load up on its shares as the chip design company sits right at the heart of Trump’s Stargate.

The AI initiative will likely give a major boost to demand for graphic processing units (GPUs) and networking designs – areas in which Arm excels.

In fact, the president’s project Stargate could mean up to $200 million a year of incremental royalty revenue from those two areas for Arm, according to Rakesh.

Arm stock is attractive to own also because it swung to a profit in its latest reported quarter. At the time, the company’s management guidance of up to $4.1 billion in revenue, with adjusted earnings per share expected to range between $1.45 and $1.65 for the full year.

However, Arm shares aren’t particularly inexpensive to own after having more than tripled since its IPO at $54 per share.

The post Trump’s $500 billion AI initiative will benefit these 3 chip stocks other than Nvidia appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
How China’s DeepSeek’s rise cost the world’s richest $108B in a day
next post
Is the TSLY ETF a better buy than TSLA stock ahead of earnings?

Related Posts

Recalled cucumbers linked to at least 449 illnesses...

August 17, 2024

Classic car sales stall in Monterey auctions as...

August 30, 2024

After Microsoft, these two stocks could be the...

March 3, 2025

Indian markets close: Sensex soars 1,509 points, Nifty...

April 17, 2025

Blank Street continues UK expansion with first store...

September 12, 2024

Emirates’ chairman has a message for Boeing: ‘Get...

May 9, 2024

Going camping off the grid is getting harder....

June 17, 2024

As the ZipRecruiter stock price implodes, will it...

December 22, 2024

Top tariff-proof S&P 500 index stocks to buy...

April 1, 2025

Johnson & Johnson to pay $6.5 billion to...

May 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved