$500B Stargate AI Project Potentially Adds Growth Runway For Nvidia Beyond 2026, Says UBS: Retail Sentiment Soars

Nvidia rival AMD is notably missing from all announcements and blog posts, which leads UBS analysts to believe that at least initially, the Stargate project will rely heavily on Nvidia to provide compute and hardware solutions.

The $500 billion Stargate venture, which President Donald Trump touted as “the largest AI infrastructure project in history,” has the potential to ease concerns of Nvidia Corp. (NVDA) investors with respect to the company’s earnings growth, UBS analysts said.

Nvidia’s stock price surged more than 4% in mid-day trade on Wednesday.

According to a report by The Fly, there is one major reason that UBS analysts cite for their bullish outlook for Nvidia’s revenue growth.

In its announcement, Sam Altman-led AI startup OpenAI noted that while it will be an equity funder alongside Oracle Corp. (ORCL), SoftBank, and MGX, its key technology partners will be Nvidia, Arm Holdings Plc. (ARM), and Microsoft Corp. (MSFT).

Nvidia rival Advanced Micro Devices Inc. (AMD) is notably missing from all announcements and blog posts, which leads UBS analysts to believe that at least initially, the Stargate project will rely heavily on Nvidia to provide compute and hardware solutions.

This, the analysts say, should ease concerns of investors who have been growing wary of compute demand peaking.

According to UBS, Stargate could potentially add a growth runway for Nvidia beyond 2026.

The brokerage has a ‘Buy’ rating for Nvidia stock, with a price target of $185, implying an upside of 26%.

Retail sentiment on Stocktwits was in the ‘bullish’ (70/100) territory, soaring from the previous day. Message volume increased, too, entering the ‘high’ (57/100) zone.

Users were similarly bullish about Nvidia stock price, too.

Nvidia’s share price has gained 18.7% over the past six months, but its one-year performance is far more stellar, with gains of nearly 146%.

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