Investing.com -- The White House’s announcement of a $500 billion investment in the Stargate data center project solidifies 2025 as the "year of AI," according to TD Cowen analysts.
This massive initiative, a joint venture between OpenAI, SoftBank (TYO:9984), and Oracle (NYSE:ORCL), aims to propel U.S. dominance in artificial intelligence by building around 20 state-of-the-art data centers across the country.
TD Cowen described the investment as a significant move in the global AI race, with the first $100 billion already committed and the remaining $400 billion to follow over the next four years.
The newly announced Stargate project “potentially positions Stargate as one of the largest AI-specific projects to be built on U.S. soil,” TD Cowen wrote.
They note that the first data center is currently under construction in Texas, with each facility expected to span approximately 500,000 square feet.
The announcement is also driving strength in AI stocks across sectors, particularly in healthcare.
“The news adds to recent positive tailwinds for the AI-driven healthcare sector, including Schrödinger's recent progress under key pharma partnerships like NVS from last week,” said the bank. “We believe AI-driven stocks stand to benefit from continued investment in the space though upcoming clinical data readouts for SDGR and RXRX as well as additional pipeline updates from ABSI will be key to better assess/validate their respective platforms and pipelines.”
“Today’s announcement reaffirms our expectations for even more meaningful growth in '25+ despite potential headwinds in other tools segments,” TD Cowen added.
With AI driving innovation across industries, TD Cowen remains bullish on its transformative potential. The Stargate project underscores the role of AI as a key growth catalyst for 2025 and beyond.