Trump Announces $500 Billion AI Infrastructure Plan, Boosting Tech Stocks Globally

Tech Up as Softbank Surges on AI Infrastructure Plan -- Tech Roundup

Shares of technology companies rallied amid hopes for an acceleration of the artificial-intelligence boom. "U.S. equities have room to grind higher as growth momentum continues," said strategists at money manager UBS Global Wealth Management's chief investment office, citing three main factors. "Ongoing investment in AI should continue to boost growth in the coming years; The current earnings season should set a positive tone to corporate profits; the U.S. economy is expanding while the Federal Reserve is easing." Shares of Softbank Group rose by more than 10%, and were set to test all-time highs after President Trump unveiled a "monumental" $500 billion AI infrastructure plan sponsored by the Japanese investment firm and partners Oracle and OpenAI, a Microsoft affiliate. Shares of Oracle and Microsoft also rose sharply. Elon Musk, who, in addition to his electric-car company and space-exploration firm heads up OpenAI rival xAI, questioned the viability of the plan.

Tech stocks climb on AI venture news By Investing.com

Investing.com -- Shares of prominent technology companies experienced gains in Wednesday's trading session, following the announcement of a significant joint venture in the artificial intelligence (AI) sector. Server manufacturers Dell (NYSE:DELL) and Super Micro saw their stocks rise by 3% and 4.5% respectively, while tech giants Microsoft and Nvidia enjoyed increases of 1.3% and 3%. Additionally, semiconductor leader Broadcom (NASDAQ:AVGO)'s shares went up by 2.4%. The upward movement in these tech stocks can be attributed to the recent unveiling of a $100 billion joint venture aimed at funding AI infrastructure. The collaboration involves SoftBank (TYO:9984) Group Corp., OpenAI, and Oracle Corp (NYSE:ORCL)., and was announced alongside President Donald Trump, signaling a robust investment in the development of AI. The ambitious project has set a goal to eventually raise funding to "at least" $500 billion for building new infrastructure for OpenAI, which includes data centers and physical campuses. The venture's initial equity will come from SoftBank, OpenAI, Oracle, and Abu Dhabi state investor MGX, with plans to start constructing the first computing system in Texas. Notably, SoftBank and OpenAI are leading the partnership, with SoftBank handling financing and OpenAI overseeing operations. Technology support for the venture will be provided by Arm Holdings (NASDAQ:ARM) Plc, Microsoft Corp (NASDAQ:MSFT)., and Nvidia Corp . (NASDAQ:NVDA), alongside Oracle and OpenAI. In response to the news, shares of SoftBank surged 11% in Tokyo, marking their biggest intraday rise since August. Oracle shares also climbed approximately 8.3% in premarket trading in New York. The joint venture has been met with optimism from the market, as President Trump has indicated a comprehensive approach to maintain US leadership in AI, including fostering private-sector investment and streamlining the permit process. The announcement also detailed that President Trump would utilize emergency declarations and executive actions to facilitate construction projects related to the venture, which could potentially ease access to energy. The collaboration has highlighted the wide-ranging applications of AI, from health to other sectors, with the potential to significantly boost US economic growth. While the full extent of the new commitments is not yet clear, the market's reaction reflects a positive outlook on the impact of AI on the tech sector. The initiative, which builds on previous investments announced by SoftBank, is seen as a strategic move to advance the US's position in the rapidly evolving AI landscape.

Asia tech, chipmaking stocks surge on OpenAI cheer By Investing.com

Investing.com-- Asian technology and chipmaking stocks rose on Wednesday, fueled largely by renewed optimism over artificial intelligence-fueled demand after OpenAI announced a massive infrastructure project in the U.S. OpenAI announced a new partnership- called the Stargate Project with several major technology companies to invest about $500 billion in building U.S.-based AI infrastructure over the next four years. Softbank's Masayoshi Son will chair the partnership, while the technology conglomerate will also be financially responsible for the project. Lead technology partners for the project will include Microsoft Corporation (NASDAQ:MSFT), Nvidia, Arm Holdings (NASDAQ:ARM), and Oracle Corporation (NYSE:ORCL), OpenAI said. News of the project boosted global tech and chip stocks, given that it entails a sharp increase in AI-related spending in the coming years. The project has already deployed $100 billion, and is scouting potential sites in Texas. U.S. President Donald Trump also announced the project on Tuesday. JPMorgan (NYSE:JPM) analysts warned that while they did not see an immediate increase in AI-related capital spending, the project still represented an overall net positive for the chip industry.

Tech drives Nikkei to 2-week closing high after Trump's AI investment plans

Japan's Nikkei share average posted a two-week closing high on Wednesday, powered by SoftBank Group and other technology stocks after U.S. President Donald Trump announced a private sector investment of up to $500 billion to fund AI infrastructure. The Nikkei ended 1.58% higher at 39,646.25, its highest close since Jan. 8, in a three session rally. Trump said that ChatGPT's creator OpenAI, SoftBank Group and Oracle are planning a joint venture called Stargate, which he said will build data centres and create more than 100,000 jobs in the United States. "Today's market is dominated by the news about Trump's AI investment announcement. Investors have already shrugged off concerns about his tariff plans and instead focused on positive elements," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. Tech start-up investor SoftBank Group jumped 10.6%, providing the biggest boost to the Nikkei. Chip-testing equipment maker Advantest, a supplier to Nvidia , rose 4% and chip-making equipment maker Tokyo Electron gained 1.68%. Makers of materials for data centres also rose, with Fujikura and Furukawa Electric surging 14.82% and 12.54%, respectively, to become the top percentage gainers on the Nikkei. The broader Topix rose 0.87% to 2,737.19, posting a smaller gain than the Nikkei as financial stocks fell. Insurer Tokio Marine Holdings fell 1.71% and Dai-ichi Life Holdings lost 2.23%. Banks fell, with Mizuho Financial Group and Sumitomo Mitsui Financial Group slipping 0.35% and 0.76%, respectively. Topix's growth index, which tracks high-flying technology shares, rose 1.26%, while the value share index for companies with smaller growth but higher dividend payouts, gained 0.51%. Of the more than 1,600 shares trading on the Tokyo Stock Exchange's prime market, 63% rose and 31% fell, with 4% flat.

Asia stocks rise as tech surges on AI cheer; China rattled by Trump tariff threat By Investing.com

Investing.com-- Most Asian stocks rose on Wednesday, with technology shares in the lead after OpenAI announced a massive partnership to build more artificial intelligence infrastructure in the U.S. But Chinese markets lagged, falling sharply after U.S. President Donald Trump raised the prospect of increased trade tariffs on the country by as soon as February. Focus this week is also on a Bank of Japan meeting, where the central bank is expected to raise interest rates amid improving economic growth and rising inflation. Asian markets took positive cues from Wall Street, which closed higher on strength in tech stocks. U.S. stock index futures rose in Asian trade, with blowout earnings from Netflix Inc (NASDAQ:NFLX) adding to the positive sentiment. Netflix surged over 10% in aftermarket trade. Sentiment towards tech was boosted chiefly by OpenAI announcing a $500 billion venture to build critical AI infrastructure in the U.S. The venture- called "Stargate," will involve several major tech companies, including Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Oracle Corporation (NYSE:ORCL), and is likely to boost demand for AI chips and data center infrastructure. Several Asian firms make up a key part of this supply chain. Optimism over AI also boosted broader tech stocks in Asia. Trump said he could impose a 10% tariff on Chinese imports by as soon as February 1, citing concerns over the flow of illicit drugs, specifically fentanyl, from China into Mexico and Canada, and into the U.S. Trump also threatened a 25% tariff on Canada and Mexico, While markets had initially seen some relief from Trump not imposing any tariffs on day one of his presidency, his comments on Tuesday kept fears of a trade war squarely in play. Still, Trump's 10% tariff threat against China is far lower than the 60% he had threatened during his campaigning. China is also expected to release more stimulus measures in the face of U.S. trade headwinds.