Stargate UAE is all set to become a transformative force in the field of artificial intelligence. In the latest news, OpenAI, Oracle, Nvidia, and Cisco are joining hands to build an extensive Stargate artificial intelligence campus in the United Arab Emirates.
“AI is the most transformative force of our time. With Stargate UAE, we are building the AI infrastructure to power the country’s bold vision – to empower its people, grow its economy, and shape its future.”
-Jensen Huang
The announcement follows US President Donald Trump’s Middle East tour last week, where Trump and the U.S. Commerce Department broadcast numerous new AI deals, including the UAE Stargate project scheduled for Abu Dhabi.
READ ALSO: 10 AI Stocks on Latest News and Ratings and 12 AI Stocks Making Waves on Wall Street Today.
The project, to be built by the US and UAE, will take place in collaboration with the Emirati firm G42. It will span 10 square miles and have a 5-gigawatt capacity. According to the companies, the project’s first part, which is a 200-megawatt AI “cluster,” is anticipated to go live in 2026.
Sam Altman, CEO of OpenAI, noted that the United Arab Emirates project is “a step toward ensuring some of this era’s most important breakthroughs – safer medicines, personalized learning, and modernized energy – can emerge from more places and benefit the world.”
In a separate post, Altman also mentioned how Stargate UAE possesses the potential to offer AI infrastructure and computing capacity within a 2,000-mile radius. This means it can reach up to half the world’s population.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
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10. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On May 23, JPMorgan analyst Toby Ogg reiterated an “Overweight” rating and EUR290.00 price target on the stock. The reiteration follows SAP’s Sapphire Conference in Orlando, where the company demonstrated a strategic pivot, focusing on suite-as-a-service applications, its Business Data Cloud, and artificial intelligence initiatives such as Joule & AI Agents.
Ogg also pointed toward early interest in SAP’s Business Data Cloud. Moreover, discussions with key SAP partners revealed eagerness for the company’s integration with Databricks, a partnership that allows companies to prepare enterprise data for AI capabilities. The firm believes that these initiatives are seen as growth drivers and aren’t fully reflected in consensus views, offering potential upside.
SAP’s CFO, Dominik Asam, talked about some challenges impacting cash conversion in 2026, but at the same time, also noted the sustainability of SAP’s growth. Overall, the firm holds a positive view about the company’s revenue growth through 2027. This supports a mid-term investment case for the stock.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems. On May 23, Wedbush analyst Dan Ives reiterated an “Outperform” rating on the stock with a $140.00 price target. The rating update follows Palantir being awarded a $795M U.S. Army modification contract for Maven Smart System software licenses. According to the firm, Palantir is a major player within the US government.
“Palantir remains one of our top names to own in 2025 and this deal represents another opportunity for PLTR to capitalize on while continuing to generate unprecedented traction for its entire portfolio across in the federal and commercial landscapes.”
-Analysts led by Daniel Ives.
The company has secured its first-ever billion-dollar contract with the Department of Defense for data fusion and target identification. In addition to the recent $795M US Army modification contract, the company had received a nearly $480M Maven Smart System back in May 2024, bringing the total value of the contract up to around $ 1.3 B.
The firm further stated that “Palantir in essence in the sweet spot to benefit from a tidal wave” of federal spending on AI across North America and Europe.
