It is always good to monitor what the participants in the industry say countless about the market before buying in the shares, and this is definitely the case with Nafidia(Nasdaq: nvda). The main demand driver of the technology company spends artificial intelligence (AI) and data centers needed to support its growth.
Despite many concerns and analysts’ questions in the last profit calls, there is no real sign of weakening the demand for artificial intelligence and spending on data centers. On the contrary, there is a lot of evidence that indicates that the demand for the data center proves or even accelerates. Here are three reasons:
Trading in the first quarter was excellent, and companies in the data center space have a good momentum.
Stories from industry players indicate that growth is accelerating, and their expectations are excellent.
A comment from excessive hope, along with capital spending plans, indicates continuous growth.
There was nothing wrong with AI and Data Center in the first quarter. Google parent alphabet))The growth in artificial intelligence products said “much higher” than the growth rate of Google Cloud revenue by 28 % in the quarter.
It was a similar story in another of the largest super players Microsoft “Once again, this quarter, revenues from our commercial business from artificial intelligence were higher than expectations.”
Players of capture and episode chanted this topic. For example, NVIDIS partner VerbWhich provides a decisive digital infrastructure for data centers and telecommunications companies, increased their accumulation by 10 % to $ 7.9 billion in the first quarter compared to the end of 2024, and reported that a book ratio to Bill from 1.4.
and NVENT ElectricityAnd that provides communication and electrical protection products, invested strongly to increase the exposure of its data center. In calling her profits, the CEO of Beth Wozniak reported the growth of adolescents by “a strong growth of data solutions and the mid -number growth in the rest of the business.”
Photo source: Getty Images.
For NVENT, the growth of the data center is not slow. In fact, Wozniak sees “accelerating and increasing the demand for our solutions.” It is a point of view that the mechanical and electrical contractor reflects The rest systems of the United States of AmericaWhich is currently generating 37 % of revenues from working on databases and semiconductor manufacturing plants. The financial manager, William George, recently told the investors, “There is no sign of an application for electricity, pipe mechanics, and plumber to help build data centers.”
The CEO of Vertiv Gyuardiano Albertzi said that the 12 -month -long pipeline was growing.
Photo source: Getty Images.
In similar to its growth rate in AI products, the CEO of Alphabet Sundar Pichai said, “We are definitely investing more” in artificial intelligence, and the administration confirmed its intention to obtain $ 75 billion of capital investments in 2025.
It was a similar story in Microsoft Hyperscaler, whose administration said was less than the data center space. There were concerns about spending expectations in this category because Microsoft was retreating from the decades of database and project stoppage.
However, CEO Satia Nadella commented on the need for a data center investment budget with the place where the work burden will be and the fact that Microsoft Azure is less than the area of the data center in general, indicating that declining operations were more related to the adjustments at the spending site instead of the general decline.
Although withdrawal in spending in the data center can always happen, there is no evidence for this yet – and there is no suggestion, at least from the companies that have been discussed above, that one will come any time soon.
This is great news for NVIDIA investors, and it is also important to note that the market had a month to digest the new tariffs “Liberation Day”. As such, NVIDIA remains and other database stocks in play.
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