Latest news with #NEXTDC
Al Etihad
18-05-2025
- Business
- Al Etihad
New UAE-US Data centre to make Abu Dhabi a global AI powerhouse
18 May 2025 22:10 KHALED AL KHAWALDEH (ABU DHABI) In a landmark announcement that could reshape the artificial intelligence (AI) landscape across the Middle East and beyond, the UAE and the US have unveiled plans for a massive 5GW AI data centre campus in Abu Dhabi. The project, described as the largest of its kind outside the US, will position the UAE as a strategic digital hub capable of serving nearly half of the world's at Qasr Al Watan on Thursday, in the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and US President Donald Trump, the project launched its first 1GW data centre, which would be part of a sprawling 10-square-mile campus - an area larger than the European principality of Monaco."To put the new 5GW AI campus in Abu Dhabi (UAE) into perspective, it would support up to 2.5 million NVIDIA B200s," Lennart Heim, AI expert at RAND Corporation, said in an X post that quickly gained traction across the tech community."That's bigger than all other major AI infrastructure announcements we've seen so far." Why Data Centres? Data centres are the physical infrastructure that powers AI applications by providing the massive computing resources needed to process complex algorithms, train large language models, and store vast datasets. These facilities house specialised hardware - including the NVIDIA B200s, a highly sought-after AI accelerator chip - designed to handle the massive computing demands of artificial intelligence, particularly generative AI. Having AI data centres located locally is critical because it reduces data latency and improves real-time processing capabilities, which are essential for applications like autonomous vehicles, smart city systems, and national security fully operational, the Abu Dhabi campus will provide low-latency compute power to a market spanning nearly 3.5 billion people within a 2,000-mile radius, covering Africa, South Asia, and parts of Europe. It will become the go-to source for AI computing in a large part of the world - with the UAE's prime location once again giving it an advantage in the era of AI, much like it has in logistics, air travel and other industries. Craig Scroggie, CEO of NEXTDC and Chairman of La Trobe University Business School, said this will not only generate substantial revenues for the UAE economy but will give them a geopolitical footing in the emerging world that is likely to be dominated by the technology. "This initiative positions the UAE as a credible AI infrastructure hub and signals a clear alignment of capital, compute, and policy," Scroggie in a LinkedIn post. "The scale, governance model, and partner ecosystem reflect a growing trend - AI infrastructure is no longer just a commercial play, it's becoming a geopolitical instrument." Trump's Middle East visit Continue full coverage
Perth Now
09-05-2025
- Business
- Perth Now
Aussie shares edge higher as US inks first tariff deal
Australian shares are edging higher after White House officials inked their first tariff deal, seeding hopes tensions could de-escalate between China and the US. The S&P/ASX200 rose 33.7 points, or 0.41 per cent, to 8,225.4, as the broader All Ordinaries gained 33.5 points, or 0.4 per cent, to 8,451.6. The tariff agreement between the UK and US helped push Wall Street higher overnight, with the Dow Jones and S&P500 both lifting more than 0.5 per cent, while the tech-heavy Nasdaq rallied 1.07 per cent. Britain's average duties on US products will fall to 1.8 per cent from 5.1 per cent, but a 10 per cent tariff on US-bound goods will remain, excepting a certain quota of UK steel. "While (it's) a good start, the trade deal that really matters for Australia is the one between the US and China, with talks set to start this weekend in Switzerland," IG Markets analyst Tony Sycamore said. "It would be a net positive if US-China trade tensions were to ease, but it is unlikely that any deal will see US tariffs on Chinese imports fall much below 50 per cent at this point of time." Seven of 11 local sectors were trading higher by lunchtime, led by a 1.8 per cent IT stock rally on the back of an overnight surge in US tech stocks. Recent Nasdaq-100 company earnings were up more than 22 per cent year-on-year, outshining S&P500 earnings, which grew 12.3 per cent. Local data centre NEXTDC was up more than three per cent on Friday, and has surged more than 44 per cent since April 7. Financials were lifting the bourse higher, up 1.1 per cent with ANZ the only big four bank in the red a day after its mixed results announcement. Investment and financial services giant Macquarie rallied 4.4 per cent to $204.45, after posting a better-than-expected $3.7 billion profit in the year to April. Energy stocks jumped 1.2 per cent, with Woodside and Santos both up roughly two per cent, as oil prices pushed higher. Brent crude futures were up three per cent since Thursday morning to trade at $US62.70 a barrel as the US sanctioned two China oil refiners for using Iranian oil. Materials were under pressure, down 0.8 per cent, with iron ore giants BHP and Rio Tinto down 1.1 per cent and 0.7 per cent as investor caution weighed ahead of US-China trade talks. Gold miners were trading lower as the precious metal eased below $US3300 an ounce, the safe haven taking a breather for now. Conversely, investors' risk-on appetite was on-show as Bitcoin broke above US$100,000 ($157,000) for the first time since January to trade at $US103,070. The Australian dollar is buying 63.87 US cents, down from 64.10 US cents as the greenback lifted on the US-UK tariff agreement and hopes of calmer waters on the US trade front.
Sky News AU
28-04-2025
- Business
- Sky News AU
ASX 200 soars almost one per cent on Monday after rising about two per cent last week despite trading for just three days
The ASX 200 has jumped almost one per cent on Monday after a rise on Wall Street last week despite varying reports about an end to the US-China tariff war. Most sectors are in the green with technology stocks, including NEXTDC (up four per cent) and Megaport Limited (up 3.5 per cent), leading the charge on Monday. Some healthcare stocks have plunged so far including Clarity Pharmaceuticals, which rose more than four per cent before diving about seven per cent in an hour, and Telix Pharmaceuticals (down 7.6 per cent). Despite this, the healthcare sector is up about 1.7 per cent while the tech sector is leading the charge up 2.3 per cent. The index rose almost two per cent in a three-day trading week that was limited by Easter Monday and ANZAC Day. Sky News Business Reporter Ed Boyd said the ASX defied expectations of opening flat on Monday with its solid rise. 'It was meant to increase just 0.2 per cent today, instead it's up almost a whole one percentage point,' Boyd said. 'We're above 8000 points for the first time in several weeks. The market was at all time record highs at 8500 points in February. It dropped back to 7500 and it's gaining quite a bit of value, surprisingly on a Monday.' On Wall Street, the S&P 500 rose 0.7 per cent and the Nasdaq jumped about 1.3 per cent while the Dow Jones dropped about 0.4 per cent on Friday (US time). It followed US President Donald Trump telling TIME magazine tariff discussions were taking place between the US and China. However, Beijing has denied any discussions took place. "China and the US are NOT having any consultation or negotiation on #tariffs," the Chinese Embassy in Washington said. "The US should stop creating confusion." Trump, speaking to reporters aboard Air Force One later on Friday, said it would be a win if China would open up its markets for U.S. products and that tariffs could make that happen. "Free up China. You know, let us go in and work China," he said. "That would be great. That would be a big win, but I'm not even sure I'm going to ask for it because they don't want it open." Since opening on Monday, the NZX 50 Index is up 0.8 per cent while Japan's Nikkei 225 has jumped 0.6 per cent and South Korea's KOSPI 200 has opened relatively flat. In Europe, Germany's DAX and the EURO STOXX 50 rose 0.8 per cent as London's FTSE 100 finished up 0.1 per cent on Friday. - With Reuters
Yahoo
27-04-2025
- Business
- Yahoo
Shareholders in NEXTDC (ASX:NXT) are in the red if they invested a year ago
The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the NEXTDC Limited (ASX:NXT) share price slid 32% over twelve months. That contrasts poorly with the market return of 7.6%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 1.4% in three years. The falls have accelerated recently, with the share price down 30% in the last three months. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Because NEXTDC made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. NEXTDC's revenue didn't grow at all in the last year. In fact, it fell 2.7%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 32% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So it makes a lot of sense to check out what analysts think NEXTDC will earn in the future (free profit forecasts). While the broader market gained around 7.6% in the last year, NEXTDC shareholders lost 32%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 3 warning signs for NEXTDC (1 shouldn't be ignored!) that you should be aware of before investing here. NEXTDC is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
NEXTDC (ASX:NXT) Will Be Hoping To Turn Its Returns On Capital Around
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. In light of that, when we looked at NEXTDC (ASX:NXT) and its ROCE trend, we weren't exactly thrilled. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on NEXTDC is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.0028 = AU$14m ÷ (AU$5.2b - AU$139m) (Based on the trailing twelve months to December 2024). Therefore, NEXTDC has an ROCE of 0.3%. In absolute terms, that's a low return and it also under-performs the IT industry average of 7.6%. View our latest analysis for NEXTDC In the above chart we have measured NEXTDC's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering NEXTDC for free. The trend of ROCE doesn't look fantastic because it's fallen from 2.2% five years ago, while the business's capital employed increased by 190%. Usually this isn't ideal, but given NEXTDC conducted a capital raising before their most recent earnings announcement, that would've likely contributed, at least partially, to the increased capital employed figure. NEXTDC probably hasn't received a full year of earnings yet from the new funds it raised, so these figures should be taken with a grain of salt. Bringing it all together, while we're somewhat encouraged by NEXTDC's reinvestment in its own business, we're aware that returns are shrinking. Although the market must be expecting these trends to improve because the stock has gained 74% over the last five years. Ultimately, if the underlying trends persist, we wouldn't hold our breath on it being a multi-bagger going forward. One more thing: We've identified 3 warning signs with NEXTDC (at least 1 which is significant) , and understanding them would certainly be useful. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
