Stock markets are choking from the mega ads of billionaires investments in AI and above all things, now in data centers. What do experts see?
If something has been clear to investors this year is that in the new economy one of the most critical resources is the processing capacity. For Wall Street now the chips and data centers that hostel have become the refineries and power plants of the last century, and governments treat them. That is why it does not strange that Governments around the world are investing billions of dollars in semiconductors and cloud infrastructure, not only to obtain an economic advantage but also to lead in artificial intelligence (AI). Just look at Openai that at the beginning of last month signed one of the largest cloud contracts in history with Oracle of US $ 300 billion in processing power, distributed in approximately five years. The agreement will require 4.5 gigawatts (GW) of energy capacity, or the equivalent of more than 1.4 times the Yacyretá dam.
There is no doubt that Openai’s investment wave has been the tide that has promoted the growth of all technological companies. Since Chatgpt broke into the scene at the end of 2022, the stock market capitalization of Nvidia, Microsoft, Oracle and Broadcom increased by US $ 8 billion. This is, without a doubt, One of the main reasons why NASDAQ and S&P 500 have continued to reach historical maximums this year.
AI: Furor for data centers
But the AI revolution has triggered an unprecedented construction boom in US data centers. According to a Bank of America report, construction spending reached a historical maximum of US $ 40,000 million in Junewhich represents an increase of 30% compared to last year, which adds to 50% of 2024. For its part, From Goldman Sachs they expect that the construction of data centers will exceed offices in general in a few years. In fact, less than three years ago, its size was only 20% lower than the offices.
In this context Washington did not stay with crossed hands and it is enough to ask Bae Systems that with financing of the Chips Law, the London -based defense contractor is modernizing its 110,000 square feet microelectronics center in New Hampshire. This installation is one of the few national foundations specialized in military semiconductors, producing specialized chips for applications ranging from safe communications to new generation combat aircraft.
By investing in manufacturers, the United States is strengthening its supply chain and guaranteeing that the army obtains the technology it needs to fight in the wars of the 21st century. In this sense, A PWC report estimates that military spending will grow from a little less than US $ 3 billion in 2024 to potentially US $ 4 billion by 2030, and an increasing part will be allocated, precisely, high -tech systems such as drones, satellites, autonomous ships and combat aircraft with ia.
Nvidia
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More government support
More and more governments support AI technology and Intel’s case is an example. Months ago, Intel reached a historical agreement with the Trump administration that announced that it would acquire a shareholding of US $ 8.9 billion in the company, in addition to billions of dollars in subsidies of the Chips Law. Above, weeks ago, Nvidia announced that it would invest US $ 5,000 million in the technology company in difficulties.
“I think the message is high and clear: semiconductors are strategic assets such as oil and critical metals, and Washington is willing to invest taxpayers money to support them”holds US Global Investors (USGI), Frank Holmes. But on the other side of the Atlantic, The United Kingdom is also increasing its investment in AI. Microsoft announced plans to invest US $ 30,000 million by 2028 in the construction of the largest supercomputer in the country, equipped with more than 23,000 GPU NVIDIA. Google, Nvidia, Openai and Salesforce are also contributing billions. Together, technological giants are investing more than US $ 40,000 million in the United Kingdom’s AI infrastructureHolmes points out.
THE BATTLE FOR THE DOMAIN OF THE INDUSTRY
So who manufactures the chips behind the revolution? Nvidia remains the undisputed leaderaccording to Morningstar that projects that the revenue from the chips of AI will quadruply in the coming years, with Nvidia at the head. But they are not alone. Broadcom is consolidating as a second manufacturer, while AMD struggles for a market share in the general GPU market.
But all this boom of the chips brings with it the need for biblical amounts of energy. According to the US Department of Energy, the specific electricity consumption for AI will grow by 33% per year, far exceeding the previous standards. “The whole ecosystem of AI depends on whether we can generate and supply sufficient electricity to feed it, so I think that investors should pay so much attention to electrical networks and cooling systems as to chips actions”advises the USGI manager.
It seems clear that computer science is the new energy and countries are accumulating it and companies are monetizing it, so that, as oil defined the twentieth century, computer science will define the 21st century, considers Holmes who advises that the question is not to obtain exposure, but how.
Source: Ambito
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