Chip Stocks That Will Benefit Most From Trump's AI Project Stargate

The Stargate artificial intelligence initiative, a $500-billion joint venture supported by Oracle, OpenAI, and SoftBank, is expected to create significant opportunities for several semiconductor makers, according to tech analysts.

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Over the next four years, the project aims to enhance AI infrastructure in the U.S., driving growth in AI inference, training, semiconductor technology, and grid infrastructure. Many on Wall Street anticipate broad benefits for the technology sector, with particular gains for key players in the semiconductor space.

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Among the primary beneficiaries identified by Mizuho Securities analyst Vijay Rakesh are Nvidia, Broadcom, and Credo Technology in the GPU and custom silicon domain, along with Arm Holdings for its intellectual property in chip design and Micron Technology for its expertise in high-bandwidth memory products. These companies are poised to play critical roles in the AI-focused infrastructure development.

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Broadcom is seen as one of the standout winners. Rakesh estimates that the company’s new Trainium platform could expand its serviceable addressable market from $20 billion in 2024 to an impressive $60 billion to $90 billion by the end of the decade. Broadcom is also positioned to benefit from its ownership of intellectual property related to chip architecture, software, and packaging.

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“We estimate that $40 billion to $50 billion of the projected $500 billion investment by 2027–28 could be allocated to custom silicon, with Broadcom (AVGO) capturing a significant portion of this as it continues advancing its proprietary chip technology,” Rakesh noted.

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In addition to Broadcom, Credo Technology and Micron Technology are expected to gain from Stargate’s infrastructure push. Rakesh highlighted the importance of connectivity and storage in the project, areas where Credo and Micron excel. Micron, in particular, is likely to see rising demand for its high-bandwidth memory products, which are crucial for AI training and inference tasks.

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Meanwhile, Arm Holdings is anticipated to benefit from royalty revenues tied to its intellectual property in graphics processing units (GPUs) and networking designs. Rakesh projects that Arm could earn $150 million to $200 million annually in royalties, driven by the increased adoption of its designs in AI-related applications.

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Despite the opportunities for other companies, Nvidia is expected to maintain its dominant position as the leading supplier of AI chips. The company’s GPUs have become essential for AI workloads, and its technology is deeply embedded in AI training and inference processes. While other players like Broadcom and Credo are gaining traction, Rakesh believes Nvidia’s established leadership and continued innovation will help it sustain its market dominance.

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The Stargate initiative represents a transformative opportunity for the semiconductor industry, particularly as AI continues to drive demand for advanced computing power. Companies like Broadcom, Credo, Arm, Micron, and Nvidia are well-positioned to capitalize on the project, which is expected to accelerate the development of AI infrastructure and foster technological advancements across multiple sectors.

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In summary, the Stargate AI project is set to become a major driver of growth in the semiconductor industry, creating opportunities for companies involved in custom silicon, memory products, connectivity, and intellectual property. Broadcom’s Trainium platform and Nvidia’s leadership in AI chips stand out as significant highlights, while companies like Credo, Micron, and Arm also stand to gain from the initiative’s ambitious goals.

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