Latest news with #capex
Entrepreneur
14 hours ago
- Business
- Entrepreneur
Adani Commits Up to $20 Billion Annual Capex
This aggressive capex strategy comes alongside a proposed INR 15,000 crore fundraising plan through a share sale or preferential allotment, for which shareholder approval is being sought. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Gautam Adani has doubled down on Adani Enterprises' growth strategy, announcing an unprecedented capital outlay of up to $20 billion annually over the next five years. In his annual letter to shareholders, the Adani Group chairman positioned the move as a bold vote of confidence in India's long-term economic trajectory and the group's ability to align with national priorities. "Our capital investment across businesses is set to break all records. We anticipate an annual capex spend of $15–20 billion for the next five years," Adani stated, in his annual letter to Adani Enterprises shareholders. The focus, he noted, will be on building out infrastructure and utility verticals, signalling a shift towards sectors the company sees as pivotal to India's future. This aggressive capex strategy comes alongside a proposed INR 15,000 crore fundraising plan through a share sale or preferential allotment, for which shareholder approval is being sought. In FY25, Adani Enterprises marked a significant financial milestone, with total income crossing the INR 1 trillion threshold for the first time—a 2.1 per cent year-on-year rise. This growth was underpinned by strong performance from its incubating businesses. The group also reported a 7 per cent increase in revenue and an 8.2 per cent jump in Ebitda, with a net debt-to-Ebitda ratio at 2.6x, which Adani described as "healthy." While outlining the group's ambitious investment roadmap, Adani also addressed the ongoing scrutiny from U.S. regulators. Adani Green Energy, one of the group firms, is under investigation by the U.S. Department of Justice and the Securities and Exchange Commission. Adani was unequivocal in his response. "Let me be clear, this was not the first time we have been tested, nor will it be the last. Every challenge sharpens our resolve," he said. He reinforced the group's commitment to compliance and governance, adding, "As we cooperate with legal processes, let me also restate emphatically, our governance is of global standards, and our compliance frameworks are robust and non-negotiable." Among its headline projects, the conglomerate is leading India's most ambitious urban renewal initiative with the Dharavi redevelopment. "Over one million people will move from narrow lanes to sunlit, modern homes," Adani wrote. The plan includes building schools, hospitals, open spaces, and transit hubs, signalling a comprehensive reimagining of one of Mumbai's most densely populated areas. The letter underscores Adani's message: the group is not retreating. It's expanding—with scale, speed, and unwavering confidence.
Globe and Mail
18-05-2025
- Business
- Globe and Mail
Artificial Intelligence (AI) Infrastructure Spend Could Hit $6.7 Trillion by 2030, According to McKinsey. 4 Data Center Stocks to Load Up on Right Now Like There's No Tomorrow.
Global management consulting firm McKinsey & Company recently published a report detailing compelling trends in research and development (R&D) and capital expenditure (capex) related to artificial intelligence (AI) investments over the next five years. Per McKinsey's analysis, spending on AI infrastructure could reach $6.7 trillion by 2030. Among these different infrastructure opportunities, McKinsey estimates that nearly $3.1 trillion will be allocated toward chip designers for AI-equipped data centers. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Let's analyze which companies are making major investments in AI infrastructure right now and explore what they're investing in. From there, I'll reveal my top four data center stocks to load up on right now and explain why. The big spenders Investors don't need to look much further than the "Magnificent Seven" to buy into McKinsey's forecast around rising AI-related capex. For the last couple of years, Microsoft, Alphabet, and Amazon have been shelling out billions, partnering with high-profile businesses such as OpenAI (maker of ChatGPT) and Anthropic. Data by YCharts. Integrating large language models (LLMs) and generative AI into their respective ecosystems has supercharged growth for megacap tech -- especially in areas such as cybersecurity, workplace productivity software, and cloud computing infrastructure. Just this year alone, Microsoft, Alphabet, and Amazon are forecast to spend nearly $260 billion on capex. Per the commentary of their respective management teams, much of this spend will be allocated toward chips and outfitting AI data centers -- just as McKinsey is calling for. In addition to the cloud hyperscalers above, Meta Platforms recently told investors that it is actually raising its capex budget for 2025. Similar to Microsoft, Alphabet, and Amazon, Meta has proven to be a big buyer of chips over these last few years. Additionally, each of these Magnificent Seven members has also been exploring their own custom silicon. With this backdrop, here are four companies that stand to benefit from these AI infrastructure tailwinds. Who will benefit from these AI infrastructure investments? When it comes to AI chip designers, my top two picks are Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). Per industry estimates, Nvidia is estimated to hold 90% (or more) of the AI GPU market with AMD comprising much of the remainder. Considering each company I referenced above currently runs on both Nvidia and AMD chip architecture, the capex spend for this year should be a major tailwind for both chip stocks. Moreover, Broadcom (NASDAQ: AVGO) stands to benefit from rising AI infrastructure spend in a couple of ways. First, the company specializes in outfitting data centers with networking equipment needed to house GPU clusters. Broadcom can also lend a hand in the area of custom silicon (which it's currently doing already with Meta). Lastly, and perhaps the most lucrative opportunity of all, is Taiwan Semiconductor Manufacturing (NYSE: TSM). Taiwan Semi specializes in the fabrication processes needed to actually make the chips designed by Nvidia, AMD, Broadcom, and more. Among Nvidia, AMD, Broadcom, and TSMC, each company plays a mission-critical role in the development of AI-powered services. Given the spending patterns from AI's biggest players appear to be very much still in motion, all four of these semiconductor stocks are well positioned for accelerated growth for years to come. All of these AI data center stocks look like great buys right now The chart below illustrates the forward price-to-earnings (P/E) multiples for Nvidia, Broadcom, AMD, and TSMC. Data by YCharts. There has been a considerable drop in the forward P/E ratios for these companies in recent months. Much of this valuation compression has to do with uncertainty around President Trump's new tariff policies. While some progress appears to have been made, it's still a fluid situation. In my eyes, many investors are sitting on the sidelines right now -- waiting to see what management teams at these companies have to say in terms of financial guidance over the next quarter or second half of the year. As a long-term investor, I'm not overly concerned about what the next couple of quarters may look like. Rather, I'm more keyed into the secular themes fueling AI growth right now. As McKinsey models in its reporting, spending on AI infrastructure -- particularly chips and data centers -- should continue to experience robust growth over the next several years. For these reasons, I would take advantage of any weakness among these chip stocks and prepare to hold on tight. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of May 12, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. 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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and 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.
Zawya
16-05-2025
- Business
- Zawya
TAQA says Q1 2025 capex rises 30% to $587mln
Abu Dhabi-listed TAQA said total capital expenditure (capex) rose 30 percent year-on-year (YoY) to 2.2 billion UAE dirhams ($586.52 million) in the first quarter of 2025. Power generation, transmission and distribution capex went up whereas oil and gas declined steeply, according to the company's Q1 2025 analysis report. Transmission & distribution (T&D) capex hit AED 1.1. billion, a 51 percent YoY increase driven by the timing and phasing of project execution of water and electricity network construction, enhancements, and upgrades, the company said in its report. The generation segment's capital spending rose 47 percent annually to AED 819 million during the quarter. This higher investment was due to the accelerated development of the Al Dhafra Open-Cycle Gas Turbine project. Water Solutions segment's capital expenditure rose 37 percent YoY to AED 180 million, mainly due to the rehabilitation, replacement, and upgrades to existing sewer networks, pumping stations and treatment plants and the development of new networks. However, capex in the oil & gas (O&G) segment declined by 50 percent YoY to AED 131 million in the first quarter of 2025. The drop was driven by the transition to decommissioning in the UK and lower capital spending on drilling and completions activity in the company's North American operations, the statement said. (Writing by P Deol; Editing by Anoop Menon)
