Oracle Stock Surges Pre-Market On Joining $500B Stargate AI Project Announced By Trump: Retail Turns Euphoric

Shares of Austin, Texas-based Oracle Corp. (ORCL) are on track to open at their highest level since early December after the company joined an OpenAI-led artificial intelligence (AI) joint venture named Stargate, announced by President Donald Trump on Tuesday.

ChatGPT maker OpenAI, Masayoshi Son-led Japanese investment company SoftBank, and AI and advanced technology investor MGX will be the project's initial equity funders. 

The new company has committed to a $500 billion investment over four years to build new AI infrastructure for OpenAI in the U.S. Of this, $100 billion will be deployed immediately.

SoftBank and OpenAI will be Stargate’s lead partners, with the former assuming responsibility for operations and the latter for financing. Son will lead the venture as its chairman.

Arm Holdings plc. (ARM), Oracle, Nvidia Corp. (NVDA), and OpenAI will be key technology partners. OpenAI has an ongoing partnership with Nvidia going back to 2016, while the Stargate venture marked a new collaboration between OpenAI and Oracle.

The JV partners said the data center buildout is currently underway, starting in Texas, and that they were evaluating potential sites across the country.

Son, OpenAI CEO Sam Altman and Oracle co-founder and Chairman Larry Ellison were at the White House as Trump announced the joint venture. The president said, “This monumental undertaking is a resounding declaration of confidence in America's potential under a new president,” Axios reported.

He also lauded Ellison as “CEO of Everything.”

The latest AI initiative from the new Trump administration comes shortly after the president rescinded the regulations governing the technology put in place by his predecessor. 

Concerted efforts to advance AI research and applications come as the technology has taken the world by storm and pervades every sector and industry. 

Oracle CFO Safra Katz said on the company’s second-quarter earnings call in December that record-level AI demand drove its cloud infrastructure revenue up 52%.

“Growth in the AI segment of our Infrastructure business was extraordinary—GPU consumption was up 336% in the quarter—and we delivered the world's largest and fastest AI SuperComputer scaling up to 65,000 NVIDIA H200 GPUs,” she said then.

ORCL sentiment and message volume January 22, 2025, as of 7:10 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Oracle stock spiked to the highest in over a year, with the mood improving to ‘extremely bullish’ (97/100) from ‘bearish’ a day ago. Message volume increased to ‘extremely high’ levels.

The stock is among the top five trending tickers on Stocktwits.

Retail watchers began to look forward to a “Nvidia-like” or “Tesla-like rally” for Oracle stock in the long term. One of them said they were buying 2026 calls.

In premarket trading, Oracle stock jumped 8.25% to $186.80 as of 7:10 a.m. ET. The stock is up 3.8% so far in January on top of 2024’s 60% gain achieved on the back of its AI exposure.

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