Zinger Key Points
- Stargate project was announced on Tuesday during a White House briefing with President Trump.
- Elon Musk questioned the project just hours after its announcement.
- Get Pro-Level Earnings Insights Before the Market Moves
After U.S. President Donald Trump announced the ambitious $500 billion Stargate project, its initial equity funders SoftBank Group SFTBY, OpenAI, Oracle Corp., and MGX along with its technology partners Nvidia Corp. and Microsoft Corp. have been in focus. We examine which of these U.S.-listed beneficiaries are the least expensive to own by the investors.
What Happened: Oracle, Nvidia, and Microsoft are the three U.S.-listed companies that are directly involved in the Stargate project.
According to the data cumulated from Benzinga Pro, Microsoft and Oracle are valued less than two times their peers based on the forward price-to-earnings ratio. While Nvidia’s valuation is just slightly lower than its peers.
Based on the forward P/E:
- Oracle is 2.72 times less expensive than its industry average.
- Microsoft is 2.41 times cheaper as compared to its peers.
- Nvidia is just 1.08 times less expensive compared to its industry average.
| Stocks | Forward P/E | Industry Average |
| Nvidia Corp. NVDA | 34.364 | 37.03 |
| Microsoft Corp. MSFT | 33.898 | 81.74 |
| Oracle Corp. ORCL | 30.03 | 81.74 |
Thus, Oracle is the least expensive stock to hold among the direct Stargate participants.
Why It Matters: The project, announced Tuesday during a White House briefing with President Trump, marks a collaboration between OpenAI, SoftBank, and Oracle to create a vast artificial intelligence infrastructure across the U.S.
The primary technology partners involved are Arm, Microsoft, Nvidia, Oracle, and OpenAI. The development is already underway in Texas, starting with a 500,000-square-foot data center in Abilene, with additional locations being assessed nationwide as final agreements are being made for more campuses.
The initiative aims to invest $100 billion right away, with plans for nine additional facilities and the possibility of expanding to 20 locations.
Tesla Inc. CEO Elon Musk questioned the project just hours after its announcement, stating that lead investor SoftBank Group has "well under $10B secured."
Musk said in an X post dated Jan. 22 that “They don’t actually have the money.”
Price Action: The exchange-traded fund tracking the AI stocks, Invesco AI and Next Gen Software ETF IGPT has risen by 9.72% over the last six months and 19.08% over the last year. While MSFT underperformed the ETF, both Nvidia and Oracle have outperformed IGPT in the same period.
| Index/ETF | Six Months | One Year |
| Nvidia Corporation | 28.86% | 139.93% |
| Oracle Corporation | 34.37% | 63.13% |
| Microsoft Corporation | 4.15% | 10.97% |
| Invesco AI and Next Gen Software ETF | 9.72% | 19.08% |
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