Trump’s $500B ‘Stargate’ AI Push Fuels Semiconductor Rally
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President Donald Trump’s announcement of a $500 billion investment into the ‘Stargate’ AI initiative sent semiconductor stocks soaring, as investors rushed to gain exposure to companies poised to benefit from advancements in artificial intelligence and high-performance computing.
The ambitious project, which aims to accelerate US leadership in AI and semiconductor innovation, has reinvigorated market enthusiasm around the sector.
Nvidia, a dominant force in AI-driven chip technology, climbed 4.5% on the news, extending its strong rally in 2025.
Meanwhile, Arm Holdings experienced an even more dramatic surge, skyrocketing 16%—its biggest single-day gain in nearly a year.
The rally underscored growing investor confidence in companies that design and manufacture the cutting-edge chips required for AI applications.
The broader semiconductor market also gained momentum, with the VanEck Semiconductor ETF (SMH) reaching its highest level since July.
The ETF, which tracks leading semiconductor stocks, has now risen over 10% year-to-date, reflecting a broader bullish sentiment around the industry.
Analysts suggest that Trump’s aggressive push for AI and chip dominance could drive further investment into semiconductor infrastructure, potentially fuelling continued growth in the sector.
