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Hello, Reader. When it comes to artificial intelligence, we knew President Trump was going to go big (it’s the only way he goes, after all). But I don’t think anyone could have predicted he would go this big… this soon. On Tuesday, Trump announced a joint venture – called Stargate Project – that will fund American AI infrastructure development over the next four years to the tune of $500 billion. This JV is ChatGPT creator OpenAI, Japan’s SoftBank Group Corp. (SFTBY), and a key technology partner (more on them in a minute). And the companies’ executives have committed to investing an initial $100 billion. The rollout has already begun, with the project building multiple new AI datacenters in Texas. Ten data centers, each 500,000 square feet, are already being built in Abilene, Texas. The construction of 10 more is also in the works. “I think it’s going to be something that’s very special,” Trump said. “It’ll lead to something that could be the biggest of all.” Additionally, OpenAI posted on X that “This infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.” Now, the third partner that I mentioned above not only one of the initial equity investors in Stargate. This company also will help build and operate the computing system… and almost certainly make sure it gets paid for that work. And so, it is poised to reap the benefits of this AI infrastructure investment. It’s also one of the holdings in my paid Fry’s Investment Report service. Already, it has seen consistent gains since I recommended it to my subscribers in September of last year. (You can learn more about become a Fry’s Investment Report member by clicking here.) So, in today’s Smart Money, let’s take a look what this company is all about… and where I expect it to go. I’ll also offer up an idea on how to play it… a strategy that can turn small gains into triple-digit ones, with little risk. Let’s take a look… | Recommended Link | | | | Bill Gates calls it: “The most transformative technology any of us will see in our lifetimes.” Eric Fry agrees, saying it’s far more advanced than anything today… including AI. But he also warns it could send millions of Americans into poverty. Take these 3 steps to prepare. |  | | A Legendary “Old-Timer” Now, this company not an up-and-coming tech newbie. Rather, it is one of the bluest of blue-chip stocks in the technology sector. While it may be a legendary tech sector “old-timer,” thanks to savvy, forward-looking strategic planning, it has become a dynamic AI play for the 202. For starters, it provides industry-leading cloud infrastructure solutions. I’m talking about Oracle Corp. (ORCL). Since getting started in 1977 – the CIA was its first customer – Oracle has become an increasingly dominant database and cloud company. Roughly 98% of all Fortune 100 companies now use Oracle as their primary database. The company has also benefited from its early strategic decision to adopt both on-premise and cloud products. On-premise servers are charged licensing fees to use Oracle’s products, while its cloud services are provided as infrastructure-as-a-service (i.e., for a regular fee). The two offerings generate roughly equal dollar-amount sales. Oracle operates the industry standard for relational databases – a structured method of data storage that tracks where each piece of information is kept. It’s a system that’s used by everyone from financial institutions to generative AI companies. These customers are now employing more data and processing power than ever before. The main services Oracle Cloud Infrastructure (OCI) provides are… - Infrastructure as a service (IaaS), which enables customers to build, deploy, and maintain secure, scalable environments.
- Software as a service (SaaS), which enables customers to build, deploy, integrate, and extend applications in the cloud.
- Oracle Autonomous Database, which provides workload-optimized cloud services for data warehousing and transaction processing.
Because OCI provides such a comprehensive suite of cloud solutions, the exponential growth of AI technologies will supercharge demand for those solutions For example, each new generation of large language models (LLMs) is using more parameters, more training data, and more “tokens.” That will directly benefit Oracle, which charges customers based on database and computational usage. So, even if we don’t know which LLM will come out ahead, it’s clear that Oracle will benefit. But thanks to Stargate, we now know that Oracle has other roads to AI profits as well… Using Leverage to Find Winners Oracle is going to be a major player in the continued buildout of AI infrastructure… and in the technology’s future. Oracle jumped 10% after the market closed on Tuesday following Trump’s Stargate announcement. (It also surged 6% on Tuesday after Trump signed an executive order to delay the U.S. TikTok ban by 75 days and shield the video-sharing app’s service providers from potential fines. Oracle is TikTok’s primary U.S. cloud computing host.) Throughout 2024, shares of the company soared 58% – their best performance since 1999 – and have risen nearly 15% in the four months since I recommended it to my Fry’s Investment Report members. Buying and holding winning stocks like Oracle is, of course, one way to generate serious gains. After all, that’s what we do, successfully, in my Fry’s Investment Report service. (Learn how to become a member.) However, tomorrow I will be releasing a free broadcast where I’ll lay out a different investment strategy. In this strategy, I use the power of leverage. Leverage is crudely defined as “using a little money to make a lot.” But I’ll use a more conventional definition: “Putting down a small investment to control a large amount of stock.” Using leverage to turn a small investment into a huge return is a tactic many successful investors have mastered. In fact, most people don’t realize that leverage played a pivotal role in the fortunes of great tech entrepreneurs like Musk, Bill Gates, and Jeff Bezos. I harness the power of leverage through long-term stocks options. These unique options are called “in-the-money” LEAPS. I will share how you can learn more about my leverage strategy – and access my special presentation – in your next Smart Money. So, stay tuned… and be sure to keep an eye out on your inbox. Regards, | 
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