Latest news with #Hyperscale
Yahoo
20-07-2025
- Business
- Yahoo
Nvidia Just Topped a $4 Trillion Market Cap, but a Different Artificial Intelligence (AI) Giant Is Headed to $4.5 Trillion, According to a Certain Wall Street Analyst
Key Points Nvidia has seen its stock soar thanks to incredible demand for its high-end GPUs. Nvidia faces challenges from other GPU makers and custom silicon projects from its biggest customers. This company is an AI leader on two fronts and trades at a reasonable valuation. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has skyrocketed in value over the last three years to become the world's first $4 trillion company. The 10x-plus increase in value from three years ago was fueled by the massive spending on artificial intelligence (AI) infrastructure, of which Nvidia's graphics processing units (GPUs) are a key component. Nvidia's dominance of the AI chip market faces some challenges, though. Competing GPU makers are catching up in price performance, and Nvidia's biggest hyperscale customers are leaning more on their custom silicon designs for generative artificial intelligence (AI) applications. That could weigh on its continued growth. Meanwhile, another AI giant could quickly follow Nvidia into the $4 trillion club and climb to $4.5 trillion within a year, according to analysts at Oppenheimer. And right now, the stock looks even more attractive than Nvidia. Can Nvidia remain the most valuable company in the world? Nvidia has established itself as the clear leader in developing chips for AI training. Its competitive position is bolstered not just by maintaining more advanced technological capabilities than its next-closest competitor, though. It also leans on its proprietary software, CUDA, making it unlikely another chipmaker can supplant its position. That said, some of Nvidia's biggest customers, like Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT), are wary of becoming overly reliant on Nvidia for their AI training hardware needs. Meta, for example, is taking its Meta Training and Inference Accelerator platform and applying it to more and more generative AI applications. The next version of its chip is designed to replace Nvidia chips in AI training for its Llama foundation model. It's already using its own chips in some AI inference cases. Microsoft has similar aspirations for its Maia chips, but recently pushed back the timeline for its next-generation AI training chip to 2026 instead of this year. These types of setbacks have hit other hyperscalers in the past, including Meta, resulting in them putting in massive orders with Nvidia. However, as the big tech companies improve their design processes, they could displace a large portion of their demand for Nvidia's chips over time. For now, Nvidia's position looks well protected. That's especially true after news that the U.S. will reverse its ban on the sale of the throttled-down H20 chips in China. Nvidia wrote down $4.5 billion in inventory last quarter after the policy went in place. As a result, the company should produce strong earnings growth through the rest of the year, fueled by China and the hyperscalers. Still, the stock trades for a premium, approaching 40 times forward earnings estimates. At its current price and long-term hurdles, it might not be able to keep climbing as fast as some of the other big AI companies. The one company that could soon take Nvidia's crown Few companies even come close to the size of Nvidia at this point. There are just 10 companies with a market cap exceeding $1 trillion as of this writing, and just three of them are worth $3 trillion or more, including Nvidia itself. But Microsoft is the next-closest to Nvidia at about $3.8 trillion as of this writing, and it could join the $4 trillion in the near future, according to analysts at Oppenheimer. They put a $600 price target on the stock, implying a market cap of about $4.5 trillion and 19% upside from its price as of July 15. There are a couple of reasons Oppenheimer's analysts are bullish. First, they see acceleration in Microsoft's Azure cloud computing revenue. Azure has become the growth engine at Microsoft, fueled by demand for compute power needed for AI development. Microsoft's stake in OpenAI not only gives it a huge customer for Azure, but it also brings key tools for other AI developers. That's fueled significant growth in demand. And despite spending $80 billion on capital expenditures, mostly going toward building and outfitting new data centers, Microsoft's management says demand continues to outstrip supply. Even so, Azure is growing faster than any of the three big public cloud platforms. The other reason the analysts are bullish on Microsoft is the potential of its Copilot Studio. While they note demand for Microsoft's native AI assistant Copilot for Microsoft 365 is relatively tepid, the demand for its custom AI assistant platform Copilot Studio could produce much better results. That enables Microsoft to increase prices for its enterprise software suite while increasing retention rates. That should produce even more cash for the company to plow back into Azure and its massive capital return program, fueling earnings-per-share growth through higher earnings spread across fewer shares. Shares of Microsoft have grown relatively expensive in their own right, with the stock trading for about 33 times forward earnings. But that's a reasonable multiple to pay for the stock of a company that's leading the AI industry on two fronts with its cloud computing and enterprise software businesses. It's worth noting that Oppenheimer analysts updated their price target for Nvidia following the news that Nvidia expects the U.S. to reverse its ban on exporting chips to China. They now expect it to reach $200 per share, implying a market cap of $4.9 trillion. But for my money, I think Microsoft is the more attractive investment at the current price. 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See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Nvidia Just Topped a $4 Trillion Market Cap, but a Different Artificial Intelligence (AI) Giant Is Headed to $4.5 Trillion, According to a Certain Wall Street Analyst was originally published by The Motley Fool
Yahoo
03-07-2025
- Business
- Yahoo
Offsite Data Center Power Infrastructure Market - Trends, Opportunity and Forecasts to 2030
Key opportunities in the Offsite Data Center Power Infrastructure Market include rising demand for scalable and resilient power systems due to growing reliance on hyperscale and colocation models, enhanced by cloud, IoT, and edge network proliferation. Innovations in energy efficiency and AI-driven power management are critical focus areas. Offsite Data Center Power Infrastructure Market Dublin, July 03, 2025 (GLOBE NEWSWIRE) -- The "Offsite Data Center Power Infrastructure Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F" has been added to Offsite Data Center Power Infrastructure Market was valued at USD 13.52 Billion in 2024 and is expected to reach USD 36.49 Billion by 2030, rising at a CAGR of 17.82%. This market is witnessing accelerated growth due to increasing reliance on outsourced data center models, particularly hyperscale, colocation, and modular facilities. As businesses embrace digital transformation, the surge in data creation and processing has amplified the need for scalable and resilient infrastructure. Offsite data centers demand highly reliable power systems to ensure uninterrupted 24/7 operations, positioning power infrastructure as a critical enabler of uptime and performance. The proliferation of cloud computing, IoT, and edge networks further intensifies the requirement for efficient, intelligent, and redundant energy solutions. Key components such as UPS systems, PDUs, generators, and lithium-ion battery systems are central to operations, with innovations focused on improving energy efficiency, system intelligence, and carbon footprint reduction to support green certification initiatives and resilience amid increasing power disruptions. Key Market Drivers: Rising Adoption of Colocation and Hyperscale Data Centers The widespread adoption of cloud services and digital platforms is fueling demand for colocation and hyperscale data centers, driving substantial investment in offsite power infrastructure. Enterprises are outsourcing storage and compute functions to third-party facilities to enhance scalability and reduce infrastructure costs. Hyperscale operators like Amazon, Google, and Microsoft require power systems capable of supporting continuous operations at multi-megawatt capacities, often exceeding 20 MW per site. Over 700 hyperscale data centers are operational globally, with 300 more in the pipeline. Meanwhile, colocation centers now handle approximately 40% of global cloud workloads and maintain strict power redundancy standards, typically N+1 or greater, to ensure service availability. This growth necessitates the deployment of advanced UPS systems, high-capacity generators, and intelligent PDUs that can manage increased energy loads and real-time performance demands with maximum efficiency. Key Market Challenges: High Initial Capital Investment and Operational Costs A significant hurdle for the offsite data center power infrastructure market is the high capital outlay and ongoing operational expenses associated with deploying and maintaining reliable energy systems. Advanced UPS units, diesel generators, switchgear, and smart monitoring tools represent considerable upfront investments, especially for smaller colocation and edge facilities. Integration of energy-efficient technologies - such as modular UPS or lithium-ion batteries - further raises costs, though they offer long-term benefits. Operational expenses are also substantial, covering maintenance, generator fuel storage, component testing, and software platform licensing. Additionally, offsite data centers often operate in regions with volatile energy markets, complicating cost management. The need for skilled personnel to manage and troubleshoot these systems adds further strain on operational budgets, making cost optimization a persistent challenge for operators. Key Market Trends: Integration of AI and Machine Learning in Power Monitoring The incorporation of AI and Machine Learning into power infrastructure is transforming operations within offsite data centers. AI-driven platforms are enabling predictive maintenance, load optimization, and fault detection by analyzing data from smart sensors embedded in PDUs, UPS modules, and switchgear. These systems identify usage patterns, inefficiencies, and performance anomalies in real time, allowing for informed decisions to reduce energy waste and improve uptime. Predictive failure analytics now help detect early signs of component stress such as voltage dips or thermal irregularities, significantly cutting the risk of unplanned downtime. This trend is particularly prevalent in hyperscale and colocation environments, where energy management and system availability are mission-critical. By leveraging ML algorithms and IoT connectivity, operators can automate responses, shift loads, and fine-tune redundancy levels, reducing operational costs by up to 30% while enhancing resilience. Key Market Players: Schneider Electric SE Eaton Corporation Vertiv Holdings Co ABB Ltd. Siemens AG Legrand SA Mitsubishi Electric Corporation Huawei Technologies Co., Ltd. Cummins Inc. Caterpillar Inc Key Attributes: Report Attribute Details No. of Pages 185 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $13.52 Billion Forecasted Market Value (USD) by 2030 $36.49 Billion Compound Annual Growth Rate 17.8% Regions Covered Global Report Scope: In this report, the Global Offsite Data Center Power Infrastructure Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below: Offsite Data Center Power Infrastructure Market, By Data Center Type: Colocation Data Centers Hyperscale Data Centers Modular/Containerized Data Centers Edge Data Centers Disaster Recovery Data Centers Offsite Data Center Power Infrastructure Market, By Power Capacity: Below 500 kW 500 kW - 1 MW 1 - 5 MW Above 5 MW Offsite Data Center Power Infrastructure Market, By End-User Industry: IT & Telecom BFSI Healthcare Government & Public Sector Retail & E-commerce Others Offsite Data Center Power Infrastructure Market, By Region: North America United States Canada Mexico Europe Germany France United Kingdom Italy Spain South America Brazil Argentina Colombia Asia-Pacific China India Japan South Korea Australia Middle East & Africa Saudi Arabia UAE South Africa For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Offsite Data Center Power Infrastructure Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
