UBS has identified NVIDIA (NVDA, Financial) and Oracle (ORCL) as key beneficiaries of the new "Stargate" AI data center in Texas. The project could generate up to $20 billion in GPU revenue for NVIDIA and over $2 billion in Oracle Cloud Infrastructure (OCI) earnings.
Located in Abilene, Texas, the data center is expected to deploy 400,000 NVIDIA GB200 GPUs, translating to an estimated $20 billion in sales. Additionally, the expansion of computing power by OpenAI through Oracle, Microsoft, and CoreWeave is anticipated to bring in an extra $5 billion in network equipment revenue.
Oracle's OCI is set to host 100,000 GPU clusters in its initial phase, driving at least $2 billion in revenue. As OpenAI shifts more workloads from Microsoft, significant order backlogs could occur.
The data center is crucial for OpenAI, helping to alleviate recent GPU shortages that have limited ChatGPT's capacity amid growing demand. This new supply will enable OpenAI to accelerate its technological advancements.
UBS analysts highlight that the scale of "Stargate" could reshape the competitive landscape among AI infrastructure providers, marking a pivotal moment for both NVIDIA and Oracle in the U.S.'s $500 billion AI strategy.
