Latest news with #hyperscaler
Globe and Mail
a day ago
- Business
- Globe and Mail
Will Nebius' 1 GW Capacity Target by 2026 Accelerate Revenue Growth?
Nebius Group N.V. NBIS is positioning itself as a key player in the AI infrastructure space by setting an ambitious target of securing one gigawatt ('GW') of capacity by 2026. Management remains confident that aggressive capacity buildout will aid in achieving 'mid-single digit billions of dollars in revenues' in the mid-term. Scaling capacity is inherent to closing large enterprise and hyperscaler contracts. It plans to secure 220 megawatts ('MW') of connected power (active or ready for GPU deployment), including 100 MW of active power by 2025. This also includes new data centers in the United Kingdom, Israel and New Jersey (new site), and capacity expansion in Finland. The company is also finalizing two new large-scale greenfield sites in the United States. Nebius is focusing on greenfield development over build-to-suit due to lower total cost of ownership (nearly 20% below market average). Moreover, building from scratch allows NBIS to have tighter control over design, construction and server installations. The 1 GW capacity target positions Nebius to capture incremental upside from accelerating demand for AI compute. NBIS highlighted that as it scales up capacity and is also 'able to sell it quickly'. Annualized run rate ('ARR') surged to $430 million in June from $249 million in March. The company expects the additional capacity, which comes online later in the year, to help it achieve updated ARR guidance. NBIS raised its 2025 ARR guidance from the previous range of $750 million to $1 billion to a new range of $900 million to $1.1 billion. Nebius called the AI infrastructure boom a "once-in-a-generation" opportunity. While the scale-up demands capital, management pointed to significant cash on hand and an opportunistic approach to raising capital. NBIS has reaffirmed its 2025 capex guidance at $2 billion. However, it needs to watch out for intense competition from other players in the AI infrastructure space, which are also focused on capacity expansion to capture a large share of the demand. CoreWeave CRWV, a pure play AI infra company, is aggressively ramping up capacity. CRWV had nearly 470 MW of active power and contracted power of 2.2 GW at the quarter-end. With more than 900 MW of active power targeted by year-end, CRWV is positioning itself as a top-tier provider capable of meeting the needs of large-scale AI training and inference workloads. Key projects include a $6 billion data center investment in Lancaster, PA and another data center in Kenilworth, NJ, through a joint venture with Blue Owl. Management has raised 2025 revenue guidance to $5.15-$5.35 billion compared with $4.9 billion to $5.1 billion projected earlier, citing accelerating demand and a robust pipeline. Nonetheless, CoreWeave's aggressive data center buildout is being funded in large part by debt. It has raised a staggering $25 billion in debt and equity since 2024. Heavy leverage and associated interest expenses can undermine profitability. Microsoft MSFT is a structurally dominant force in the tech space. The company is a leader in the cloud infrastructure space with its Azure platform and is now rapidly making inroads in the AI infrastructure space. OpenAI investment is the crown jewel for MSFT, which has positioned Azure as the ideal platform for AI workloads. It is integrating AI capabilities across Office, GitHub and Dynamics. MSFT has altered every Azure region into an AI-first environment with liquid cooling capabilities, positioning itself at the forefront of the artificial intelligence infrastructure wave. Over the past year, the company has added more than 2 GW of new datacenter capacity, and now has over 400 datacenters across 70 regions. NBIS' Price Performance, Valuation and Estimates Shares of Nebius gained 161.9% year to date compared with the Internet – Software and Services industry's growth of 26.2%. Image Source: Zacks Investment Research In terms of price/book, NBIS' shares are trading at 4.53X, down from the Internet Software Services industry's ratio of 102.14X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NBIS' earnings for 2025 has been unchanged over the past 30 days. NBIS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Nebius Group N.V. (NBIS): Free Stock Analysis Report CoreWeave Inc. (CRWV): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
6 days ago
- Business
- Yahoo
Mizuho Raises Nvidia and AMD Price Targets To $205 On AI-Server Boom
Aug 14 - Mizuho's top tech analyst Vijay Rakesh just turned up the heat on the GPU battle, raising price targets on Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to $205 each while keeping Outperform calls. He pins the move on surging AI-server demand and heavy hyperscaler spending that should keep both companies busy for quarters to come. Rakesh sees Taiwan-based server makers, think Wistron and Wiwynn, driving strong buy-ins of Nvidia gear, and he expects new GPU license approvals in China to add roughly 300,000500,000 units annually across NVDA and AMD, boosting second-half momentum into 2026. Warning! GuruFocus has detected 5 Warning Signs with NVDA. For Nvidia, Mizuho leaves the July-quarter revenue view intact at $46.2B but lifts multi-year targets, forecasting fiscal 2026 revenue near $208B and EPS of $4.51, then $260B/$5.95 in 2027 and $292B/$6.71 in 2028. For AMD, Rakesh raises near-term estimates and predicts Radeon/Instinct GPU revenue to climb from $8.57B in FY25 to $13.6B in FY27, driven by MI308 and MI355 ramps in China. Bottom line: Mizuho bets AI demand keeps the tailwinds fierce, but execution, supply cadence, and China licensing remain key risk factors to watch as both chipmakers scale into the AI era. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Globe and Mail
10-08-2025
- Business
- Globe and Mail
These 3 Technology Stocks Are Money-Printing Machines
Key Points Broadcom's custom AI chip business continues to power large hyperscaler deployments globally. ServiceNow remains a dominant force in the enterprise workflow automation market. Oracle dominates the enterprise database market and has one of the most secure AI platforms. These 10 stocks could mint the next wave of millionaires › The technology sector has created extraordinary wealth for the shareholders since the dawn of the internet age. While a few of the technology companies have been building critical infrastructure needed to power the digital economy, many others have successfully developed consumer applications that have become indispensable for billions of users. Here are three technology giants that have generated exceptional long-term returns for shareholders and are well worth considering today. 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 » Broadcom Artificial intelligence (AI) infrastructure giant Broadcom (NASDAQ: AVGO) has created an exceptional portfolio of customized semiconductor chips and infrastructure software solutions. Broadcom's financials are impressive. The company raked in $15 billion of revenue in the second quarter of its fiscal 2025 (ended May 4), up 20% year over year. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached $10 billion, translating into a 67% margin. The chipmaker produced $6.4 billion in free cash flow during the second quarter and has a strong balance sheet with $9.5 billion in cash. Thanks to its strong cash generation and solid financial position, it has returned an impressive $7 billion to shareholders in the second quarter through dividends and stock buybacks. Broadcom's AI semiconductor business (custom accelerators and AI networking) remains the key growth engine, with revenue rising 46% year over year to $4.4 billion in the second quarter. While custom accelerator revenue was up double-digits, AI networking revenue soared by more than 170% in the second quarter. Management now expects the company's AI semiconductor revenue to grow 60% to $5.1 billion in the third quarter. Unlike Nvidia, which dominates the GPU landscape, Broadcom has become a major provider of custom processors and is currently working with three hyperscalers who are each planning to deploy 1 million AI accelerator clusters by 2027. Besides chips, the company's advances in AI networking (Tomahawk 6 switches) are enabling massive AI clusters in a manner that can lower latency and improve bandwidth, all while reducing power consumption. Broadcom's $61 billion acquisition of VMware, an infrastructure software company, is also proving to be a brilliant move. Broadcom's infrastructure software business now operates at a 93% gross margin and 76% operating margin. Considering Broadcom's cutting-edge AI offerings and robust financials, the stock seems an impressive pick now. ServiceNow ServiceNow (NYSE: NOW) generates substantial revenue by selling enterprise AI and workflow automation solutions through its Now Platform. In the second quarter, the company generated over $3.1 billion in subscription revenue, up 22.5% on a year-over-year basis. With another $102 million earned from professional services and other areas, the company generated more than $3.2 billion in revenue in the second quarter, up 22.5%. Management expects to hit a $15 billion-plus subscription revenue target in 2026. This tech giant has emerged as a significant beneficiary of the increasing adoption of enterprise AI globally. The company's Now Assist offering (a suite of generative AI capabilities integrated into the Now workflow automation platform) is projected to generate $1 billion in annual contracted business by 2026, almost four times higher than $250 million annual contracted value in early 2025. ServiceNow served 528 customers paying above $5 million in annual contracted value, while the number of customers contributing beyond $20 million annually expanded by more than 30% year over year in the second quarter. The company's Now platform boasts a remarkable 98% renewal rate, highlighting the stickiness of its offerings. The enterprise software leader generated $535 million in free cash flows, translating into a 16.5% free-cash-flow margin in the second quarter. The company is committed to returning capital to shareholders, as is evident from $361 million worth of share repurchases in the second quarter. Despite these buybacks, ServiceNow boasts an impressive $10.8 billion in cash and investments at the end of the second quarter. Considering the ServiceNow's many strengths, smart investors should consider at least a small stake in the company. Oracle Oracle (NYSE: ORCL) generates substantial cash flows by developing and selling cloud infrastructure and database software solutions, many of which are powering complex AI workloads. Oracle's database technology works in conjunction with Oracle Cloud Infrastructure (OCI, Oracle's cloud computing platform). It is also compatible with all of the leading cloud platforms, such as Amazon 's AWS, Alphabet 's Google Cloud, and Microsoft 's Azure. Additionally, Oracle Database 23ai enables enterprises to work with their proprietary data and all the popular large language models while maintaining complete security. The company reported $15.9 billion in revenue in the fourth quarter of its fiscal 2025 (ended May 31), up 11% year over year. OCI was a significant growth driver, and saw revenue jump 52% to $3 billion in the fourth quarter. The enterprise technology leader generated $20.8 billion in operating cash flow during fiscal 2025, an increase of 12% year over year. With its backlog growing 41% year over year to $138 billion at the end of fiscal 2025 and further expected to grow 100% by the end of fiscal 2026, Oracle enjoys exceptional revenue visibility. Oracle is also committed to returning capital to shareholders, as is evident from $150 million in share buybacks in the fourth quarter and dividend payments of almost $4.7 billion in fiscal 2025. Management also expects OCI revenue to grow year over year by 70% in fiscal 2026, while total revenue is expected to be at least $67 billion, up 16%. This highlights the company's solid growth prospects in the coming year. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,047%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
07-08-2025
- Business
- Yahoo
These 3 Technology Stocks Are Money-Printing Machines
Key Points Broadcom's custom AI chip business continues to power large hyperscaler deployments globally. ServiceNow remains a dominant force in the enterprise workflow automation market. Oracle dominates the enterprise database market and has one of the most secure AI platforms. These 10 stocks could mint the next wave of millionaires › The technology sector has created extraordinary wealth for the shareholders since the dawn of the internet age. While a few of the technology companies have been building critical infrastructure needed to power the digital economy, many others have successfully developed consumer applications that have become indispensable for billions of users. Here are three technology giants that have generated exceptional long-term returns for shareholders and are well worth considering today. Broadcom Artificial intelligence (AI) infrastructure giant Broadcom (NASDAQ: AVGO) has created an exceptional portfolio of customized semiconductor chips and infrastructure software solutions. Broadcom's financials are impressive. The company raked in $15 billion of revenue in the second quarter of its fiscal 2025 (ended May 4), up 20% year over year. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached $10 billion, translating into a 67% margin. The chipmaker produced $6.4 billion in free cash flow during the second quarter and has a strong balance sheet with $9.5 billion in cash. Thanks to its strong cash generation and solid financial position, it has returned an impressive $7 billion to shareholders in the second quarter through dividends and stock buybacks. Broadcom's AI semiconductor business (custom accelerators and AI networking) remains the key growth engine, with revenue rising 46% year over year to $4.4 billion in the second quarter. While custom accelerator revenue was up double-digits, AI networking revenue soared by more than 170% in the second quarter. Management now expects the company's AI semiconductor revenue to grow 60% to $5.1 billion in the third quarter. Unlike Nvidia, which dominates the GPU landscape, Broadcom has become a major provider of custom processors and is currently working with three hyperscalers who are each planning to deploy 1 million AI accelerator clusters by 2027. Besides chips, the company's advances in AI networking (Tomahawk 6 switches) are enabling massive AI clusters in a manner that can lower latency and improve bandwidth, all while reducing power consumption. Broadcom's $61 billion acquisition of VMware, an infrastructure software company, is also proving to be a brilliant move. Broadcom's infrastructure software business now operates at a 93% gross margin and 76% operating margin. Considering Broadcom's cutting-edge AI offerings and robust financials, the stock seems an impressive pick now. ServiceNow ServiceNow (NYSE: NOW) generates substantial revenue by selling enterprise AI and workflow automation solutions through its Now Platform. In the second quarter, the company generated over $3.1 billion in subscription revenue, up 22.5% on a year-over-year basis. With another $102 million earned from professional services and other areas, the company generated more than $3.2 billion in revenue in the second quarter, up 22.5%. Management expects to hit a $15 billion-plus subscription revenue target in 2026. This tech giant has emerged as a significant beneficiary of the increasing adoption of enterprise AI globally. The company's Now Assist offering (a suite of generative AI capabilities integrated into the Now workflow automation platform) is projected to generate $1 billion in annual contracted business by 2026, almost four times higher than $250 million annual contracted value in early 2025. ServiceNow served 528 customers paying above $5 million in annual contracted value, while the number of customers contributing beyond $20 million annually expanded by more than 30% year over year in the second quarter. The company's Now platform boasts a remarkable 98% renewal rate, highlighting the stickiness of its offerings. The enterprise software leader generated $535 million in free cash flows, translating into a 16.5% free-cash-flow margin in the second quarter. The company is committed to returning capital to shareholders, as is evident from $361 million worth of share repurchases in the second quarter. Despite these buybacks, ServiceNow boasts an impressive $10.8 billion in cash and investments at the end of the second quarter. Considering the ServiceNow's many strengths, smart investors should consider at least a small stake in the company. Oracle Oracle (NYSE: ORCL) generates substantial cash flows by developing and selling cloud infrastructure and database software solutions, many of which are powering complex AI workloads. Oracle's database technology works in conjunction with Oracle Cloud Infrastructure (OCI, Oracle's cloud computing platform). It is also compatible with all of the leading cloud platforms, such as Amazon's AWS, Alphabet's Google Cloud, and Microsoft's Azure. Additionally, Oracle Database 23ai enables enterprises to work with their proprietary data and all the popular large language models while maintaining complete security. The company reported $15.9 billion in revenue in the fourth quarter of its fiscal 2025 (ended May 31), up 11% year over year. OCI was a significant growth driver, and saw revenue jump 52% to $3 billion in the fourth quarter. The enterprise technology leader generated $20.8 billion in operating cash flow during fiscal 2025, an increase of 12% year over year. With its backlog growing 41% year over year to $138 billion at the end of fiscal 2025 and further expected to grow 100% by the end of fiscal 2026, Oracle enjoys exceptional revenue visibility. Oracle is also committed to returning capital to shareholders, as is evident from $150 million in share buybacks in the fourth quarter and dividend payments of almost $4.7 billion in fiscal 2025. Management also expects OCI revenue to grow year over year by 70% in fiscal 2026, while total revenue is expected to be at least $67 billion, up 16%. This highlights the company's solid growth prospects in the coming year. 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 $465,314!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,483!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $635,544!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of August 4, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Oracle, and ServiceNow. 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. These 3 Technology Stocks Are Money-Printing Machines was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Automotive
- Yahoo
Here's Why Aehr Test Systems Blasted Higher Today (Hint: It's AI Related)
Key Points Major new orders lifted the stock today. Speculation will turn to who that customer might be, but in any case, Aehr is diversifying its end markets. Its core end market is likely to return to growth in time. 10 stocks we like better than Aehr Test Systems › Shares in Aehr Test Systems (NASDAQ: AEHR) had blasted higher by more than 20% at 10 a.m. today on the news of follow-on orders for its artificial intelligence (AI) processor volume production test and burn-in solutions. New orders, new optimism? The news comes less than two weeks after the company released its fourth-quarter 2025 earnings report. Back then, CEO Gayn Erickson took a cautious approach to financial guidance for 2026, saying, "While we remain confident in Aehr's long-term growth prospects, we continue to experience some timing-related delays in order placements due to tariff-related uncertainty, particularly in our first quarter." The order delays, or at least some of them, were cleared much more quickly than Erickson may have expected. Aehr's hyperscaler customer Speculation will now turn to the identify of the "world-leading hyperscaler" that made the orders for eight of Aehr's Sonoma ultra-high-power systems, not least as the orders result in "a more than doubling of the number of production systems with this customer." It's impossible to know unless Aehr or the customer itself divulges the information. Still, a quick look at Aehr's customer list in its latest investor presentation shows Alphabet's Google and Microsoft -- good places to start looking. Image source: Getty Images. Aehr's long-term growth prospects In a sense, the customer doesn't matter as much as the fact that Aehr continues to diversify away from the currently challenged silicon carbide (SiC) wafer-level burn-in (WLBI) test solutions market and into new growth markets. The demand for SiC WLBI equipment is primarily driven by electric vehicles, and the softening of investment in EVs is slowing down demand. However, Aehr's new AI-driven markets will strengthen the company's long-term growth prospects, and it's only a matter of time before EV investment picks up again, leaving Aehr well positioned for long-term growth. Should you buy stock in Aehr Test Systems right now? Before you buy stock in Aehr Test Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aehr Test Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
