Shares of AI-related companies surged Wednesday after the Trump administration’s announcement of a $500 billion joint venture with Oracle (ORCL), OpenAI, and SoftBank spurred optimism about a rising tide of AI investments. 

For Oracle, the project could mean "significant revenue opportunity ahead starting potentially this year,” Morgan Stanley analysts told clients Wednesday, with a portion of the companies' initial $100 billion investment appearing bound for Oracle’s data centers in Abilene, Texas.

The project, known as Stargate, also "reads positively" for Microsoft (MSFT) as a backer for OpenAI and partner for the initiative, the analysts said.

Oracle shares jumped close to 8% in intraday trading Wednesday, extending Tuesday's gains ahead of the announcement, while Microsoft shares rose nearly 4%.

As key technology partners for the initiative, Nvidia (NVDA) and Arm Holdings (ARM) were also among the companies that saw their shares pop, with Arm shares soaring 15%, and Nvidia climbing close to 5%.

Shares of several Nvidia partners and other companies in the AI chipmaker's ecosystem, including Dell (DELL), TSMC (TSM), and Hewlett Packard Enterprise (HPE), gained as well.

Wedbush analysts said they believe the project could also represent “the start of a wave of massive AI investments to take place in the U.S.,” anticipating more announcements in the coming weeks.