According to tech analysts, several semiconductor companies are poised to benefit significantly from President Donald Trump’s Stargate artificial intelligence project. This ambitious initiative is a $500 billion joint venture supported by Oracle, OpenAI, and SoftBank that aims to enhance AI infrastructure in the United States over the next four years. Wall Street predicts that the entire tech industry will feel the positive effects, spurring growth in areas like semiconductor development and grid infrastructure.
Among those expected to gain are Nvidia, Broadcom, and Credo Technology, particularly within the GPU and custom silicon spaces. Arm Holdings is set to profit from vital chip intellectual property, while Micron Technology will likely see advances in high-bandwidth memory products. Mizuho Securities analyst Vijay Rakesh highlights Broadcom as potentially one of the largest beneficiaries. He projects that Broadcom’s new Trainium platform could expand its market from $20 billion to an impressive $60 to $90 billion by 2024. Broadcom will also likely gain from its intellectual property rights concerning chip architecture, software, and packaging.
Rakesh noted, referring to Broadcom with its ticker symbol, “We anticipate around $40 to $50 billion of the $500 billion spend by 2027-28E from OpenAI could focus on custom silicon (AVGO) as we progress in the project timeline and AVGO develops its own chip.”
Besides Broadcom, Rakesh sees opportunities for Credo and Micron Technology to profit from Stargate due to growing connectivity and storage demands. Arm is expected to earn between $150 and $200 million annually through royalties from graphics processing unit and networking designs. Despite the competition, Rakesh maintains that Nvidia is likely to retain its stronghold as the leading AI chip supplier.
