June 2 - UBS analysts say the AI-focused Stargate project in Abilene, Texas, could be a major windfall for companies like Nvidia (NASDAQ:NVDA) and Oracle (NYSE:ORCL), according to a Saturday UBS note to clients. The $500 billion initiative aims to build multiple data centers, with the first site already under construction.

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Nvidia is poised to capture the lion's share of revenue. At full capacity, the Abilene facility could require as many as 400,000 of Nvidia's next-generation GB200 GPUs, potentially generating around $20 billion. Add in networking gear, and the analysts estimate the total opportunity might climb to $25 billion for Nvidia.

Oracle's boost is smaller but still meaningful. Once phase 1 wraps and phase 2 gets rolling, Oracle Cloud Infrastructure could deploy more than 100,000 GPUs. That setup could translate to roughly $2 billion in revenue, a figure UBS contends many investors aren't fully valuing.

OpenAI, which has outgrown Microsoft's capacity, is scrambling for more AI infrastructure. The analysts note that capacity constraints earlier this year forced OpenAI to slow down some projects. Stargate's Abilene center should help it move faster on new offerings.

This article first appeared on GuruFocus.