Microsoft alone is projecting $80 billion of infrastructure spend for data centers in 2025; meanwhile, OpenAI, Oracle, and SoftBank are leading the newly announced Stargate initiative under President Trump -- a project aiming to invest $500 billion into AI frameworks over the coming years.

Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) are pioneers in artificial intelligence (AI) as both companies have played central roles in bringing this technology mainstream. While Microsoft-backed OpenAI kicked off the AI craze when it launched the highly popular ChatGPT in November 2022,

Wedbush Securities Managing Director Daniel Ives says Nvidia’s stock plunge over the new Chinese AI model was an “overreaction”.

Nvidia is the gold standard and leading provider of the graphics processing units (GPUs) used to train and run AI systems. The company is believed to control as much as 98% of the data center GPU market, according to semiconductor analyst firm TechInsights. If AI models can be trained on lower-cost, inferior chips, Nvidia has a lot to lose.