President Donald Trump announced a $500 billion private sector initiative the day after his inauguration with OpenAI, Oracle (NYSE:ORCL), SoftBank (OTCMKTS:SFTBY), and MGX. It will help build AI infrastructure across the U.S. and is the largest AI infrastructure project in history. The first tranche of $100 billion has been invested already. Ten data centers are already under construction and there are plans to build 20 more. It is expected to create 100,000 jobs.
The impact of this deal on the stock market has been quite bullish, especially for AI-related companies and those involved in the deal. Arm Holdings (NASDAQ:ARM) is up over 12% since the deal and SoftBank is also up 12%. Oracle has gained 13%.
More gains are likely to come down the line as the full amount is deployed over a 4-year period. Data center-related companies are likely to gain the most from this deal if it fully materializes. Investing in them now can be a smart idea if you are confident that the entire pledged amount will be invested as promised and AI development will continue unabated. Elon Musk, for one, seems pretty skeptical.
Here are three to look into:
Taiwan Semiconductor (NYSE:TSM) is probably the most under-appreciated semiconductor stock and doesn’t get as much credit as it should. Without TSMC, most of the top semiconductor companies today would not exist. It is by far the biggest manufacturer of computer chips and it just wouldn’t be possible to build hardware for AI without it. The company’s AI accelerator revenue tripled in 2024 and accounts for about 20% of revenue. It is expected to double again this year.
The Stargate project could drive massive investments in AI, and a lot of this money will inevitably find its way into TSMC. The company is already critical for AI and also has three U.S. fabs under construction. It has invested more than $65 billion in the U.S. Even without it, it is unlikely to face tariffs as that would lift most chip prices and hurt fablesss companies.
As such, I see it as one of the top beneficiaries of Stargate if it ends up successful. TSM stock is a good deal on its own as revenue grew 37% year-over-year to $26.88 billion and net income grew 57% YOY to $11.6 billion. TSMC expects its overall revenue to grow at a 20% CAGR over the next five years, and for AI chips, it is looking at a 40% CAGR over the same period.
The global semiconductor market is also expected to reach $1 trillion by 2030.
Project Stargate is causing power companies to surge. Those involved in nuclear energy are delivering very strong gains as data centers are very power intensive. The current power grid is going to come under strain if the grid isn’t expanded fast.
Nuclear currently seems like the best bet since it’s a pretty clean source of energy if the waste is properly stored. Moreover, the biggest advantage is that nuclear power is very stable and generates electricity 24/7. It is perfect for powering data centers that are sensitive to power fluctuations and need 100% uptime. Goldman Sachs estimates AI data center power demand could increase by 160% by 2030. The demand could exceed grid supply by 2033, so the companies are acting fast. Most major large-cap tech companies have some sort of partnership with a power company to power their data centers.
Oklo (NYSE:OKLO) is a nuclear fission company and is backed by Sam Altman. Its flagship product is a reactor called Aurora that can produce 15-50 MW of electrical power and operate for up to 10 years without refueling. It can also use recycled nuclear waste as fuel.
Oklo is targeting its first commercial deployment in 2027. The broader SMR market is projected to reach $14 billion by 2032, so there’s plenty of room to expand. It also has a 12 GW Master Power Agreement through 2044. It is one of the largest corporate clean power agreements in history.
The current cash position of $288.5 million should be more than enough to fund it for years.
Celestica (NYSE:CLS) is an electronics manufacturing company with two segments. The first one is Advanced Technology Solutions and the second is Connectivity & Cloud Solutions. The latter segment is what you can thank for the stellar performance here (up 302%) in the past year.
The news about Stargate has added more fuel to its growth since this company supplies the hardware that data centers need. It sells high-performance computing switches and storage units that are going to be highly in demand if AI stays hot.
The CSS segment has already seen a lot of growth due to demand from AI tech giants. Revenue from generative AI-related has been soaring and Q3 revenue grew by 22% year-over-year, along with EPS increasing by 60% YOY. Celestica expects $10.4 billion in 2025 revenue (up 8% YOY) and a 15% YOY increase in EPS. These may seem low, but Celestica will likely exceed expectations as it has been doing so continuously for many quarters.