Earlier this week, President Donald Trump unveiled a big-ticket private-sector collaboration called Stargate. The project will bring together OpenAI, SoftBank (SFTBY), and Oracle (ORCL) to invest in American artificial intelligence (AI) infrastructure. This joint venture plans an initial investment of $100 billion, scaling up to $500 billion over four years, to build extensive AI data center infrastructure across the United States.
The Stargate project signals a cooperative approach between the Trump administration and tech companies, with Oracle playing a central role as the primary infrastructure provider. The initiative has already begun, with Oracle co-founder Larry Ellison revealing that 10 buildings are under construction in Abilene, Texas, with plans to expand to 20 buildings and additional locations.
The market reaction was positive, particularly for Oracle, whose stock rose 7% on Wednesday. Other AI-related companies, such as Nvidia (NVDA) and Arm Holdings (ARM), also saw gains following the announcement. This collaboration appears to be part of a broader strategy to compete with China in AI development while maintaining American technological leadership. OpenAI’s Sam Altman described it as “the most important project of this era.”
In this article, I have identified three “Strong Buy”-rated stocks you can buy following the Stargate announcement.
Big Tech Stock #1: Nvidia
Nvidia’s (NVDA) remarkable success story continues to unfold. The stock rose 4.1% on the Stargate news, making it the world’s most valuable company by market capitalization. Nvidia is building on its impressive performance over the past two years, during which its value has increased sevenfold.
Nvidia, named as a key technology partner in the Stargate project, is well-positioned to benefit given its overwhelming 90%-plus market share in data center GPUs, which are essential for AI systems.
Despite its substantial growth, analysts suggest Nvidia still has room for expansion, thanks to new initiatives like its AI supercomputer for individual developers. The AI chip market is also forecast to grow to over $300 billion by 2029, indicating a CAGR of 20%.
Today, NVDA stock trades at a price-earnings multiple of 50.74x, which might seem steep. However, adjusted earnings per share are forecast to expand from $2.95 in fiscal 2025 (ending in January) to above $6 in fiscal 2027.
Out of the 43 analysts covering NVDA stock, 36 recommend “Strong Buy,” three recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $176.90, indicating upside potential of 20% from current levels.
Big Tech Stock #2: Meta Platforms
Meta Platforms (META) has reemerged as a dominant social media and digital advertising force. After the tech stock nosedived in 2022, it has surged 339% over the last two years. Meta’s social media portfolio includes Facebook, Instagram, WhatsApp, and Threads. Threads has already surpassed 275 million monthly users and is adding roughly 1 million users daily as of November 2024.
These numbers showcase Meta’s expertise in building and monetizing social platforms. Meta’s average revenue per person (ARPP) across these platforms reached $12.29 in the third quarter of 2024, comfortably outperforming competitors like Snap (SNAP) and Pinterest (PINS).
Moreover, Meta is investing strategically in AI to enhance user engagement and improve advertising effectiveness. These AI-driven improvements have increased user time on Facebook and Instagram, while businesses using AI-generated ads are seeing 7% higher conversion rates.
Under Trump, analysts have tapped Meta Platforms as a likely winner, particularly as CEO Mark Zuckerberg increases his relationship with the president. Zuckerberg attended Inauguration Day festivities and donated $1 million to a Trump fund. Meta also just ended its fact-checking program, a move seen as a way to gain favor with the Trump administration.
Meta’s growth story is far from over, as it is expected to grow adjusted earnings from $14.87 per share in 2023 to $30 per share in 2026. Out of the 52 analysts covering META stock, 44 recommend “Strong Buy,” two recommend “Moderate Buy,” four recommend “Hold,” and two recommend “Strong Sell.” The average target price for META stock is $675.18, 7% above the current trading price.
Big Tech Stock #3: Amazon
The final stock on the list is Amazon (AMZN), a major player in multiple sectors such as e-commerce, cloud computing, and digital advertising. Amazon accounts for 40% of the U.S. online retail market, and its retail dominance is reinforced by Amazon Prime’s 200 million subscribers. This creates a loyal customer base and a recurring revenue stream for the company.
Moreover, e-commerce sales still represent only 16% of total retail spending, suggesting significant room for growth. Plus, Amazon’s most profitable segment is Amazon Web Services (AWS), which generated 74% of Amazon’s operating profits in the first nine months of 2024. AWS accounted for 17% of total sales in this period.
Amazon founder Jeff Bezos and current CEO Andy Jassy have both praised Trump in recent weeks, with Amazon also donating $1 million to his Inauguration Day fund. Wedbush analyst Dan Ives also wrote that the Stargate announcement will be bullish for AMZN stock.
Under Jassy’s leadership, Amazon has focused on efficiency. Analysts expect Amazon to expand adjusted earnings per share from $2.90 in 2023 to $6.20 in 2025. Out of the 49 analysts covering AMZN stock, 45 recommend “Strong Buy,” three recommend “Moderate Buy,” and one recommends “Hold.” The average target price for AMZN stock is $254, 9% above the current price.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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