Data Center REIT ETF & Stocks: Unsung Hero of AI Boom
Nasdaq In the feverish race towards AI innovation and implementation, fortunes are already being made - especially for those providing the tools needed in this digital gold rush. As AI applications continue to grow in complexity, their computational needs surge in tandem, creating an attractive market for those able to fulfill this demand.
Let's dive into a promising investing area that is set to benefit from the AI euphoria, i.e., data center.
Nvidia & AMD: Powering AI's Ambitions
Nvidia, a renowned designer of semiconductors essential for many AI servers, is an obvious player in this space. On May 24, Nvidia comfortably surpassed analysts' revenue and profit expectations for the three months to April. Jensen Huang, Nvidias CEO, affirmed the world is on the cusp of a "new computing era."
The firm's share price leapt by 30% following the announcement, pushing the companys market value tantalizingly close to $1trn. Nvidia's substantial revenue from data-center operations, accounting for 56% of sales, could feasibly double due to AI's increasing demand for more powerful chips.
