Nvidia (NVDA, Financial) and Oracle (ORCL, Financial) stand to reap massive windfalls from Texas's AI-focused Stargate data center, with UBS estimating up to $20 billion in GPU revenue for Nvidia and over $2 billion for Oracle Cloud Infrastructure.
At full build-out, the Abilene, Texas site could demand 400,000 Nvidia GB200 GPUs—translating to roughly $20 billion in sales and an extra $5 billion in networking revenue as OpenAI scales compute capacity via partnerships with Oracle, Microsoft (MSFT, Financial) and CoreWeave (CRWV, Financial). Meanwhile, Oracle's OCI could host a 100,000-GPU cluster in Phase 1 alone, driving at least $2 billion in revenue and igniting a potentially “material backlog event” as OpenAI shifts more workloads from Microsoft.
For OpenAI, the center's capacity is critical: recent GPU constraints forced product throttling amid surging ChatGPT demand, and Abilene's additional supply will let OpenAI accelerate its roadmap and reclaim momentum. UBS analysts Karl Keirstead, Timothy Arcuri and Radi Sultan argue that as OpenAI pursues deeper infrastructure control, Stargate's scale could reshape the competitive landscape for AI infrastructure providers.
Investors should care because Nvidia's GPUs and Oracle's cloud services are positioned at the heart of America's $500 billion AI push, and securing large-scale, multi-year commitments at Stargate could be a game-changer for both companies' growth trajectories.
