V i e w p o i n t | 12 Jun 2025 00:28:47 ET │ 22 pages MENA Natural Resources & ClimateTech GCC Set To Become Global AI Hub CITI'S TAKE Building on our global data center outlook, we explore the emerging opportunity in the Middle East. In our view, advantaged energy costs – and low cost of capital – means that the GCC can grow faster than global peers, taking a potential 5% market share this decade and with significant opportunity to scale beyond. We upgrade ADNOC Gas to Buy (4 AED TP) as our higher gas-to- ...

Look no further than industrials, though. I do that because Kevin bought more Caterpillar, which I want to hear about. Why now for an industrial name like this.It's surprising that you see industrials perform as well as they have this year, surpassing my expectations certainly. But I look at Caterpillar as almost like a stealthy play within the data center space because you need the industrials, Caterpillar specifically, to do this type of heavy construction. It's trading at only a 17 PE, 25% discount to Jo ...

ONEOK (NYSE: OKE ) is a fast-growing midstream enterprise with a focus on natural gas and the company has long term potential for distributable cash flow and dividend growth amid increasing investments in the AI and Data Center industries. ONEOK also acquiredAnalyst’s Disclosure:I/we have a beneficial long position in the shares of OKE, EPD, ENB, KMI, MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensa ...

Core Insights - Constellation Energy Corporation (CEG) is positioned to capitalize on the increasing demand from data centers, with the U.S. data center market projected to reach $308.83 billion by 2030 [1] Company Strategy - CEG's nuclear infrastructure allows it to meet the rising energy needs of power-intensive businesses like data centers by connecting them directly to nuclear energy generation facilities, minimizing the need for long-distance power transmission [2] - The company emphasizes the reliability and carbon-free nature of nuclear power as essential for powering AI data centers, shifting focus from direct power plant supply to potential projects linked to the U.S. electrical grid [3] Key Agreements - Meta has signed a 20-year power purchase agreement with CEG to supply nuclear power for its AI data centers in Illinois, starting in 2027, ensuring a consistent supply of clean energy [4] - Microsoft has also entered a 20-year agreement with CEG to revive the Three Mile Island nuclear plant, with a $1.6 billion investment aimed at providing carbon-free electricity for its expanding data centers [4] Industry Context - Other nuclear-focused companies, such as Xcel Energy and Vistra Corp., are also benefiting from the growing demand for data centers, with Xcel's plants providing about 30% of electricity for its Upper Midwest customers and Vistra investing $2.5 billion in data center energy projects by 2027 [7][8] Stock Performance - CEG's stock has increased by 43.2% over the past three months, outperforming the industry average growth of 22.4% [9][10] - The company is trading at a premium with a forward 12-month price-to-earnings ratio of 28.96X compared to the industry average of 21.66X [12] Earnings Outlook - The Zacks Consensus Estimate indicates an earnings per share increase of 8.77% for 2025 and 22.39% for 2026 for Constellation Energy [14]

Uh, you know, I had Jensen uh Hang on the BG2 podcast uh last year. It's when people were were saying, "Oh, this training is hitting an upper bound and all this AI is overblown and remember uh Nvidia fell and all these AI stocks were falling and and Jensen Hang said on on the podcast, he said, you know, we are now moving into inference time reasoning where the machines begin to recursively think for themselves." And he said at that moment, inference isn't going to 10x. It isn't going to 100x. It isn't going ...

Nvidia (NVDA -0.85%) stock has soared by 870% since the start of 2023, catapulting its market capitalization to a whopping $3.5 trillion. Demand continues to exceed supply for the company's graphics processing units (GPUs) for the data center, which are the most powerful chips in the world for developing artificial intelligence (AI) models.Nvidia CEO Jensen Huang says new AI reasoning models, which spend more time thinking to produce accurate responses, require up to 1,000 times more computing capacity than ...

How This Small Startup Landed OpenAI’s $500 Billion Data Center Moonshot https://t.co/vWpnamAdHL #ForbesAI50 ...

Investment Rating - The report maintains a bullish outlook on the KR Defense sector, particularly highlighting Hyundai Rotem and Hanwha Aerospace as key players with strong order momentum and growth potential [1][4][5]. Core Insights - Hyundai Rotem is expected to announce a significant Poland EC2 contract valued at approximately $6 billion, which includes 180 K2 tanks and local production initiatives [4]. - Hanwha Aerospace has secured an L-SAM II project order worth W199 billion, enhancing its capabilities in Korea's air defense systems [5]. - Hitachi's recent investor day revealed a net debt/EBITDA leverage of 1-2x and a return on invested capital (ROIC) of 12-15%, indicating a stable financial position [1]. Detailed Highlights - **KR Defense**: Hyundai Rotem's anticipated Poland EC2 orders are a strong catalyst for growth, with investor confidence reflected in recent share price rallies [4]. Hanwha Aerospace's order win for the L-SAM II project and the approval of the Austal acquisition position it well for future projects [5]. - **Japan Auto**: Hino Motors and Mitsubishi Fuso have finalized a merger agreement with Toyota and Daimler, aiming to create synergies in the commercial vehicle segment [6]. Stanley Electric's guidance for FY25 was weaker than expected, but a large-scale share buyback was announced [6]. - **Mitsubishi Electric**: The company is focusing on digital transformation and has allocated a new M&A budget of ¥1 trillion to support its business model transformation [8]. Sector Key Newsflow - The J.P. Morgan EU Industrial Conference highlighted strong interest in electrification, data centers, and defense sectors, indicating a shift in investor focus [5][7]. - The merger between Hino and Mitsubishi Fuso is expected to yield significant benefits despite potential dilution from new share issuance [6]. - Investors are cautiously optimistic about the Asia FA & Robotics sector, with expectations of limited downside amid potential trade deals between China and the US [10]. Catalyst Calendar - Key upcoming events include the Hitachi Investor Day and the launch of the Xpeng G7 SUV, which are expected to attract significant investor attention [15].

Thai Billionaire Harald Link’s B.Grimm, Digital Edge Building $1 Billion AI-Powered Data Center https://t.co/W2TuJULxtV https://t.co/KInKfFnwjk ...

Industry Overview - The semiconductor industry is projected to grow from $631.01 billion in 2025 to $958.93 billion by 2030, with a CAGR of 8.73% during this period, driven by demand for AI and data center technologies [2] - Shipment volume in the semiconductor market is expected to increase from 1.40 trillion units in 2025 to 2.29 trillion units by 2030, at a CAGR of 10.32% [3] AMD Insights - AMD's data center revenues surged 57.2% year over year to $3.674 billion in Q1 2025, accounting for 49.4% of total revenues, driven by the adoption of EPYC processors [4] - The launch of the AMD EPYC 4005 Series processors in May 2025 is aimed at enhancing performance and efficiency for small and medium businesses [6] - AMD's partnerships with major hyperscalers like Oracle and Google Cloud have expanded the use of its EPYC CPUs, contributing to its growth [5] Semtech Insights - Semtech's data center revenues reached a record $51.6 million in Q1 fiscal 2026, up 143% year over year, driven by demand for CopperEdge and FiberEdge products [7] - The launch of the CopperEdge portfolio in April 2025 includes solutions that enable 800G and 1.6T connectivity for AI/ML data centers, focusing on power savings and performance [8] - Semtech has strengthened collaborations with cloud service providers, enhancing its position in next-generation data center infrastructure [9] Performance and Valuation - Year-to-date, AMD shares have decreased by 2.8%, while SMTC shares have fallen by 38.5%, attributed to a challenging macroeconomic environment [11] - Both AMD and SMTC shares are currently considered overvalued, with AMD trading at a forward Price/Sales ratio of 5.65X and SMTC at 3.09X [14] - The Zacks Consensus Estimate for AMD's 2025 earnings is $4.02 per share, reflecting a 21.45% year-over-year increase, while SMTC's fiscal 2026 earnings estimate is $1.66 per share, indicating an 88.64% year-over-year increase [16] Earnings Performance - AMD has consistently beaten earnings estimates over the past four quarters, with an average surprise of 2.30%, while SMTC has a higher average surprise of 10.83% [17] - Semtech's stronger earnings surprise history and innovative solutions position it as a more attractive investment compared to AMD [18]