On his second day in office, President Donald Trump pledged up to $500 billion in investment in artificial intelligence as part of a new partnership formed by OpenAI, Oracle and SoftBank.
The Stargate Project plans to build data centers and energy infrastructure to harness next-generation AI and could potentially cement American dominance in AI. Microsoft MSFT , MGX Fund Management Limited MGX and chipmakers Nvidia NVDA and Arm Holdings ARM are also partners on the project.
The White House plans to invest an initial $100 billion, but the total investment could total five times that opening pledge. Construction is already underway on 10 of the 20 planned Stargate structures, including a 482,000-square-foot “data hall” in Texas, scheduled to be completed in May 2025.
Multiple stocks could benefit from the outpouring of new money into AI. The following three stocks not only target megatrends, but are also poised to deliver shareholder gains in the near future.
NextEra Energy
Given the scale at which the Stargate Project is operating, renewable energy will certainly play a major role in its success and potential expansion. With that in mind, NextEra Energy NEE is a no-brainer to be on the list, with its storied history as a juggernaut in the wind and solar power industry. The renewable energy giant boasts a proven track record of supporting large-scale data operations, throwing more weight behind its AI-powered bull case.
During Q2 last year, the big headline was NextEra’s massive 860-megawatt agreement with Google, to power its expanding data centers. The deal is just part of a 7-gigawatt portfolio of data centers and tech industry contracts at the end of that quarter. Additionally, NextEra has inked a dynamic new partnership with GE Vernova , focusing on the development of natural gas-fired energy generation, specifically targeting AI data centers.
On top of that, NextEra continues to advance the broader narrative of sustainability, with a healthy expansion in its substantial solar and wind contracts.
NextEra’s balanced portfolio gives it the edge over its competition in handling the intensive AI-related demands, while addressing the needs of an industry-wide shift toward greener energy.
The Stargate funding could come at just the right time, given NextEra is on an excellent run over the past year. The stock is up 28 percent, a massive improvement to say the least from its negative 11 percent return over the past three years. And NextEra might raise its dividend while it’s at it, a payout that has grown for nearly 30 years.
Enphase Energy
The Stargate Project will reportedly integrate solar power and battery storage to support the energy demands of AI infrastructure.
With that backdrop, Enphase Energy ENPH , a towering presence in solar energy, is set to benefit remarkably from the project.
Enphase’s patented microinverter and battery storage technology is particularly relevant, effectively harnessing the power of energy from a centralized utility to modular solar microgrids, lowering the dependence on the broader grid and the risk of outages. These decentralized microgrids offer a consistent power source, which ensures 24/7 availability for power-hungry AI computations.
Over the past year, Enphase has peppered a lot of AI into its systems, to effectively optimize consumption in real time. Through its IQ Energy Management software, Enphase is able to coordinate solar input, battery storage and grid supply ensuring real-time optimization and efficiency. By layering clean energy with cutting-edge AI-driven management, Enphase stands to be a huge beneficiary of Stargate’s ambitious infrastructure.
Stargate comes at an ideal time for Enphase, considering how the company has been mostly sluggish in growing its top line over the past year. Though it has been effective in milking profits despite the slowdown in sales, the company needs a major catalyst for it to take things up a notch or two.
Tempus AI
Tempus AI is one of the hottest stocks of late, surging over 35% in the past six months. AI plays a pivotal role in driving the health care industry forward, with Tempus expected to be a major beneficiary of the trend.
Tempus AI’s powerful data ecosystem and diagnostic platform will prove to be a game changer for high-precision medicine and genomics solutions. One of the key differences for Tempus lies in its capacity to aggregate and analyze tons of multimodal healthcare data, ranging from clinical and imaging to molecular insights. The company’s robust one-stop shop lays the groundwork for advanced analytics, backed by powerful AI algorithms uncovering critical biomarkers while guiding therapy recommendations.
Though concerns remain over debt and cash burn, which is typical for early-stage biotechs, Tempus recent market performance has drawn a ton of market attention. The stock is up more than 50 percent, led by a superb mix of investor enthusiasm and strategic deals, along with the acquisition of Ambry Genetics. The acquisition is expected to contribute to both its operating efficiency and bottom-line performance.
Against the backdrop of Stargate’s resources and drive to advance AI technology, Tempus AI appears well-positioned for further gains. The comprehensive approach to precision medicine and close-to-breakeven outlook suggests the early momentum could be just the beginning for long-term expansion in an AI-powered healthcare landscape.
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