Minuk's Musings and Stargate

This week, Trump announced Stargate!

 

No, not Stargate the 1994 movie starring Kurt Russel that depicts a device capable of creating a wormhole, allowing instant travel between distant locations in the universe.

 

 

 

Stargate, a joint venture involving companies like Oracle and Microsoft through their relationship with Open AI. The initiative plans to invest up to $500 billion in AI infrastructure over the next 4 years. In other words, datacentres to support next-generation AI models and even potentially some iteration of quantum computing.

 

 

 

 

This initiative has been framed as not only an economic endeavor but also strategic to national security, securing US dominance in AI.

 

This week, our team hosted an online webinar on Artificial Intelligence with Malcolm White and Jeremy Yeung, portfolio managers with BMO Global Asset Management and experts on the subject.

 

The replay can be viewed by clicking HERE.

 

Below is a look at the price returns of Oracle and Microsoft along with Nvidia, the creator of the “Blackwell chip” that will cerntainly be used in the new datacentres.

 

	Price Return 2025	Price Return 2024	Dividend Yield
Microsoft (MSFT)	+5.4%	+12.1%	0.7%
Nvidia (NVDA)	+7.2%	+171.2%	0.0%
Oracle (ORCL)	+11.0%	+58.1%	0.9%

Source: FactSet, Values as of January 23, 2025

 

Hope you have a nice weekend.

 

Rich

Investment Advisor