Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Wednesday, January 22nd, and I'm your host, Kim Kong. A top story so far. Stargate. Good movie, even better TV spinoffs, and now an AI infrastructure project. Think

data centers rather than interstellar travel. The new administrations project will see companies

like Oracle, SoftBank, MGX, and OpenAI commit an initial $100 billion to build data centers

in the U.S. starting in Texas. The initiative could reach over $500 billion over the next four years.

Initially, 10 data centers will be built in Abilene, with plans to expand to 20 over time,

Oracle co-founder Larry Ellison said. Arm, Nvidia, and Microsoft were also named as key partners

in the project. Analysts said Project Stargate is likely to usher in a new era of massive artificial intelligence investments in the U.S., though the broader implications may not be known for some time.

Wedbush says, we believe this is the start of a wave of massive AI investments to take place in the U.S.

as we expect more big tech players to make announcements over the coming weeks.

McCarray analyst Paul Golding says regardless of how much money SoftBank puts in,

its involvement in the project should show investors, quote, how valuable the quality

and combination of its assets and tech investment management capabilities are.

B of A analyst Brad Sills says Stargate is a possible positive for Oracle, but adds, quote,

with our full-year 2025 estimates for Oracle's capital expenditures reaching $13.9 billion,

up 103%, against full-year 25 estimate cloud revenue of 24.7 billion of 25%.

We believe we are entering a period where negative margin leverage is likely to occur near term.

And B of A analyst just in post says the possibility remains it could result in more competition

for Amazon and Google for AI workloads.

Stargate is likely well positioned to power U.S. government AI usage.

Healthcare was cited as a target vertical, and possibly

competing versus AWS for other AI workloads, he said. And remember the tagline for the

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