MILAN/PARIS, Jan 22 (Reuters) - Global industrial and technology stocks, such as Oracle and Schneider Electric, surged on Wednesday following U.S. President Donald Trump's announcement of a significant artificial intelligence investment initiative.
Trump revealed plans on Tuesday for private-sector funding to support AI infrastructure, prompting a rise in stocks related to the technology's development.
Oracle, a key player in the endeavor, saw its shares surge more than 9.5% in early U.S. market trading. Other U.S. AI-related companies like Nvidia, Broadcom, and Arm also experienced gains ranging from 2% to 6.5%.
Microsoft, another participant in the project, recorded a 2% increase.
In Europe, many stocks reached all-time highs.
Schneider Electric, a leading French provider of electrical equipment for data centers, achieved a 3.4% surge to reach a new peak in Paris.
Italian cable manufacturer Prysmian, which acquired U.S.-based Encore Wire last year, soared by 3.3% to hit a record high. Meanwhile, Germany's Siemens Energy and ABB, which supply electric hardware for AI infrastructure, rose by 6.7% and 3.8%, respectively.
According to Angelo Meda, head of equities at Banor SIM in Milan, these companies are part of investment portfolios focused on electrification, data centers, and energy transportation infrastructure, benefiting from AI, electric vehicles, and related trends.
The Stargate initiative, a collaboration between OpenAI, SoftBank, Oracle, and other investors, will initially allocate $100 billion with additional funding expected over the next four years.
SoftBank and OpenAI will spearhead the project with financial and operational responsibilities, respectively, for which details are still being determined.
Elon Musk, head of xAI and a vocal OpenAI critic, expressed doubts about the funding, stating that SoftBank allegedly secured significantly less than $10 billion.
Rene Haas, CEO of Arm, mentioned to CNBC that the consortium is finalizing the financial arrangements for Stargate.
Analysts anticipate further company involvement, with funding likely to come from the joint venture partners and possibly supporting pre-existing projects.
Ben Barringer, technology analyst at Quilter Cheviot, indicated that founding partners initiated the investment, suggesting potential expansion and ongoing developments in the initiative.