About an hour's drive from Philadelphia, an abandoned state medical institution is giving locals a fright, but not for the reason you might think. Real estate developer Derek Shrine believes artificial intelligence is here to stay. For Shrine, that means trading in ghosts for gigabytes.But some serious work is in order. First, the grounds are currently home to an operational haunted house attraction. Penhurst Asylum, as it's known, has become a local fixture that draws thousands of visitors every year.Shrin ...

Core Insights - Women We Admire has announced The Top 50 Women Chief Revenue Officers of 2025, highlighting the importance of Chief Revenue Officers in modern organizations as they integrate various revenue-generating functions into a cohesive, data-driven strategy for growth [1] - The recognized leaders demonstrate a strong understanding of market dynamics and utilize both data and intuition to foster sustainable growth [1] Individual Recognitions - Maile Kaiser, Chief Revenue Officer of CoreSite, has over 25 years of experience in sales and management across various industries, focusing on revenue growth and strategy for data centers [2] - Tamara Adams, Chief Revenue Officer for Hexagon's Asset Lifecycle Intelligence division, has over two decades of experience in scaling software businesses and enhancing customer retention through AI and data-driven marketing [3] - Coker Powell, Executive Vice President and Chief Revenue Officer of The Leukemia & Lymphoma Society, has led initiatives that raised over $2.6 billion for health challenges, showcasing her impact in the philanthropic sector [4] Additional Honorees - The list includes notable figures such as Marji Karlin (NYC Health + Hospitals), Elizabeth Herbst-Brady (Condé Nast), and Teri Hatfield (Salesforce), among others, reflecting a diverse range of industries and expertise [6]

Core Viewpoint - Vertiv Holdings Co (NYSE:VRT) is recognized as a strong investment opportunity in the data center sector, with significant growth potential and a bullish outlook from analysts [1][2]. Group 1: Company Performance - Vertiv's stock has increased by 63% year-to-date [1]. - The company has a backlog of $8.5 billion and a book-to-bill ratio of 1.2 times [2]. - Record orders reached $3.22 billion, reflecting a 25% year-over-year increase last quarter [2]. Group 2: Growth Projections - Capital expenditures (Capex) are expected to grow by approximately 50% from 2025 to 2029 [2]. - Vertiv is projected to achieve organic growth of 15% to 20% in this environment [2]. - The company aims to increase operating margins to 25% by 2028, with current margins expected to improve from this quarter onward [2]. Group 3: Market Position and Strategy - Vertiv is positioned as a key player in the infrastructure investments necessary for AI and data center operations [3]. - The company is noted for its power and thermal management systems, which are critical for data center functionality [3]. - Analysts believe that Vertiv has strong growth prospects and operating leverage compared to its peers, supported by a "best-in-class" management team [2].

Core Insights - The AI bubble is deflating gradually, with significant differences in outcomes for various market tiers, leading to a separation of winners and losers in the next 18 to 24 months [3][30] - Tier 1 hyperscalers like Microsoft, Alphabet, and Amazon are well-positioned due to their substantial capital expenditures and strong cash flows, allowing them to weather disappointing AI returns [2][9][10][11] - Tier 2 companies, including unicorns like OpenAI and Anthropic, face existential questions regarding their ability to justify high valuations amidst competition from hyperscalers and cheaper models [1][3] - Tier 3 companies are experiencing mass casualties, with increased startup shutdowns and failed AI pilots, indicating a challenging environment for less established firms [6][28] Tier 1 Hyperscalers - Microsoft is projected to have a $13 billion annual run rate in AI, with a 175% year-over-year increase, supported by $72 billion in annual free cash flow [9] - Amazon's AWS is growing at 17.5% year over year, reaching a $123 billion annual run rate, allowing for significant investment in AI infrastructure [10] - Alphabet's revenue is heavily reliant on internet-search advertising, with an operating margin of 32.4% and estimated capital expenditures of $85 billion for AI and data-center infrastructure [11] Tier 2 Unicorns - Companies like OpenAI are valued at $500 billion, but face scrutiny over whether they can deliver returns that justify such valuations [1][7] - The AI bubble is not comparable to the dot-com crash, as the current situation involves a slow deflation rather than a sudden collapse [4][3] Tier 3 Companies - Startup shutdowns surged by 26% year over year in 2024, and 95% of enterprise AI pilots failed to show measurable P&L impact within six months of launch [6][3] - The number of down rounds in venture deals reached a decade high at 15.9% in 2025, indicating a challenging funding environment [3] Investment Strategies - Investors are advised to buy Tier 1 hyperscalers during corrections of 15% to 20%, as these companies have strong fundamentals and cash flow to support AI investments [9][10][11] - Investing in data centers is recommended due to projected power constraints, with Gartner forecasting that 40% of AI data centers could face power-availability issues by 2027 [13][14] - Companies like Dominion Energy are positioning themselves as essential players in the AI infrastructure landscape, with significant investments planned [15][20] Profitable Companies - Companies that automate back-office processes, such as UiPath and BlackLine, are highlighted for their strong ROI and profitability, making them attractive investment opportunities [21][22] - Enterprise SaaS leaders like Atlassian and DocuSign are leveraging AI to enhance their products, maintaining strong customer bases and financial performance [23][25][26]

Core Insights - OpenAI, Oracle, and Related Digital are collaborating to build a large-scale data center campus in Saline Township, Michigan, aimed at enhancing Stargate capacity across the US [1][2] - The project is part of a multi-billion dollar commitment to provide 4.5GW of additional Stargate infrastructure for AI workloads [2] - The campus will feature a closed-loop cooling system to manage water usage efficiently, aligning it with standard office facilities [2] Project Details - The proposed campus will span 250 acres and consist of three single-storey buildings, each covering 550,000 square feet [2] - Power will be supplied by DTE Energy, supplemented by a new battery storage system financed by the project [3] - The project is expected to create over 2,500 union construction jobs during its construction phase [3] Economic Impact - Once operational, the project is projected to generate over 450 onsite roles through Related Digital and Oracle, along with 1,500 positions in Washtenaw County for ancillary operations [4] - The development is anticipated to create thousands of indirect jobs throughout Michigan and nationwide [5] - The project aims to strengthen domestic supply chains and enhance economic opportunities related to AI [6] Environmental Considerations - The campus, referred to as 'The Barn', will maintain a historic red barn at its entrance and aims for LEED certification [5] - The build plan includes minimum setbacks of 75 feet from the road and visual screening features [5] Construction Management - Walbridge, a Detroit-based construction firm with over a century of experience, has been appointed as the general contractor for the project [5]

From horror to hyperscale: The rush to build AI data centers is so intense that even the owner of a hospital-turned haunted house wants in https://t.co/2mOors7IKX ...

Group 1 - OpenAI, Oracle, and related digital companies announced the construction of a large-scale data center park in Saline, Michigan, with a computing capacity exceeding 1 gigawatt (GW) [1][3] - This project is the first specific initiative disclosed under the "Gateway to the Stars" plan, marking the official launch of this ambitious infrastructure project [3] - The overall capacity target for the "Gateway to the Stars" plan is 4.5 GW, with additional planned sites across the U.S. bringing the total capacity to over 8 GW [3] Group 2 - Industry estimates suggest that achieving this ambitious blueprint may require investments exceeding $450 billion over the next three years [3] - The investment for the Michigan project is described as "several billion dollars," but industry standards indicate that a 1 GW computing infrastructure typically costs around $50 billion [3] - The project is expected to begin construction in early 2026 and will create over 2,500 union construction jobs [3] Group 3 - OpenAI's recent corporate restructuring is seen as a crucial step in preparing for a potential IPO valued at up to $1 trillion, which is necessary to meet the substantial funding requirements [3] - The project aims to position Michigan as a key part of building the next generation of AI infrastructure in the U.S. [3]

Summary of Key Points from the Conference Call Industry Overview - The analysis focuses on the AI data center industry, specifically the economics of GB200/NVL72 AI data centers [2][24]. Core Insights and Arguments - **Cost Estimates**: A typical GB200/NVL72 rack costs approximately $3.4 million, with physical infrastructure costs around $2.5 million per rack, leading to total AI data center capital expenditure (capex) of $5.9 million per rack or $35 billion per gigawatt (GW) [3][25]. - **Comparison with Nvidia**: This estimate is significantly lower than Nvidia's projected $50-60 billion per GW, suggesting Nvidia may be anticipating future product cycles [3][28]. - **Cost Composition**: - GPUs account for 39% of total costs, while Nvidia's gross profit dollars represent 29% of total costs, indicating that Nvidia's gross profit dollars constitute about 30% of total AI data center spending [4][26]. - Networking expenses are around 13% of total spending, with switches being the largest component at approximately 3% [5][27]. - Storage costs are minimal, representing about 1.4% of total spending [29]. Additional Important Insights - **Foundry and Supplier Economics**: Foundries capture 2.5-3% of data center capex through GPUs, with additional contributions from CPUs and memory suppliers [6][30]. - **Mechanical and Electrical Equipment**: Major costs include diesel and gas generators (6%), uninterruptible power supplies (4%), and transformers (5%), with thermal management costs at around 4% [7][32]. - **Operational Costs**: The annual electricity cost to run a GW of data center capacity is approximately $1.3 billion, with personnel costs being relatively low [8][33]. - **Market Dynamics**: Companies that serve as bottlenecks in the supply chain are likely to capture a larger share of economic value as demand increases [35]. - **Future Trends**: The power content in data centers is expected to increase significantly, with projections for the Vera Rubin Ultra design indicating a potential increase to 7-8 times the current power content by 2027 [38]. Investment Implications - **Nvidia (NVDA)**: Rated Outperform with a price target of $225, highlighting the significant and early-stage datacenter opportunity [12]. - **Broadcom (AVGO)**: Also rated Outperform with a target of $400, expecting strong growth driven by software and cash deployment [12]. - **AMD (AMD)**: Market-Perform rating with a target of $200, noting high AI expectations and potential growth from a new deal with OpenAI [12]. - **Intel (INTC)**: Market-Perform rating with a target of $35, indicating ongoing challenges [12]. - **Qualcomm (QCOM)**: Outperform rating with a target of $185, despite headwinds from Apple [13]. This summary encapsulates the key points from the conference call, providing insights into the AI data center industry's economics, cost structures, and investment implications.

Summary of J.P. Morgan Global Capex Survey Industry Overview - The report focuses on the global capital expenditure (capex) trends across various industries, particularly highlighting the data center (DC) and AI-related end markets. [1][4] Key Findings Capex Growth Projections - Global capex is projected to increase by **10% year-over-year (yoy)** in **2025**, which is **2 percentage points higher** than previous estimates. [1][4] - The **Internet, Media, and Services** sector is expected to lead this growth with a **55% yoy** increase, up **16 percentage points** from earlier estimates. [1][4] - For **2026**, global capex is expected to grow by **1% yoy**, a recovery from the previous estimate of **-1% yoy**. [1][4] Sector-Specific Revisions - **2025 Revisions**: - Positive: - Internet Media & Services: **+16pp to +55% yoy** - Iron & Steel: **+9pp to +2% yoy** - Industrials: **+7pp to +12% yoy** - Negative: - Automotive: **-4pp to -1% yoy** - Chemicals: **-3pp to -4% yoy** - Consumer Products: **-1pp to +1% yoy** [4] - **2026 Revisions**: - Positive: - Internet Media & Services: **+12pp to +17% yoy** - Semiconductors: **+6pp to +6% yoy** - Utilities Power Generation: **+3pp to +1% yoy** - Negative: - Discretionary Retail: **-3pp to flat yoy** - Automotive: **-2pp to -1% yoy** - Cement and Aggregates: **-2pp to -3% yoy** [4] 2027 Capex Outlook - The first look into **2027** indicates continued strength in AI-related markets, with expected growth in: - Internet Media & Services: **+7% yoy** - Utilities Network: **+4% yoy** - Discretionary Retail: **+4% yoy** - Sectors expected to cut capex the most include: - Iron & Steel: **-6% yoy** - Mining: **-5% yoy** - Pulp & Paper: **-3% yoy** [4] Implications for WEG - The survey results are viewed positively for **WEG**, indicating higher expected spending in AI-related markets until **2027**. [1][4] - WEG has announced investments of approximately **R$5.3 billion (~US$980 million)** over the past two years to expand production, including doubling transformer capacity and entering the high-voltage motor segment. [1][4] - The capex survey's correlation with WEG's foreign revenue growth has decreased to **~80%** from **~90%** in 2023, indicating a potential shift in market dynamics. [5] Additional Insights - The survey covers around **3,900 listed companies** across **19 end markets**, representing approximately **US$3.4 trillion** of capex. [1][4] - The report highlights the importance of monitoring commodities-related sectors, which could negatively impact revenues in Industrial Electro-Electronic Equipment. [1][4] Conclusion - The J.P. Morgan Global Capex Survey presents a bullish outlook for capital expenditures, particularly in sectors related to AI and data centers, with significant implications for companies like WEG. The findings suggest a recovery in capex growth, particularly in the Internet and Utilities sectors, while caution is advised for sectors like Automotive and Chemicals. [1][4][5]

Core Insights - SLB has reorganized its Digital Solutions divisions into a distinct reporting entity, generating annual revenue at a run rate of $2.4 billion with a margin of 32.7%, expected to reach 35% [1][10] - The growth in SLB's Digital Solutions segment is driven by demand from hyperscalers responding to the AI boom and data center growth, with revenue from Data Center Solutions reaching $331 million for the quarter [3][10] - Major oilfield service companies are shifting focus from traditional oilfield services to digital and subscription-based revenue models, leveraging their expertise in remote operations [8][10] Digital Transformation - SLB's Digital Solutions includes Platform & Applications, Digital Operations, Digital Exploration, and Professional Services, aiming to integrate digital services across all offerings [1] - The company anticipates that revenue from Digital will eventually surpass that from core oilfield services [1] - The total addressable market (TAM) for digital solutions in this space shows significant growth potential through 2032 [2] Market Dynamics - The demand for data centers is increasing due to the rapid shift toward digital transformation and the adoption of cloud services for flexibility and cost efficiency [3] - Oilfield service companies are facing challenges in their core business due to declining markets, prompting a pivot towards AI-led digital subscription revenue sources [3][8] Strategic Partnerships - Halliburton has formed a joint venture with VoltaGrid to provide distributed power generation solutions for data centers, leveraging both companies' strengths [4][7] - The partnership aims to address the growing demand for microgrids as traditional power infrastructure struggles to keep pace with data center growth [4] Financial Performance - SLB's Digital Solutions segment is expected to enhance overall profitability, with an EBITDA margin of 32% projected to grow to 35% [10] - Both SLB and Halliburton are currently trading at single-digit EV/EBITDA multiples, indicating that the market has not fully recognized their revenue potential from new ventures [10]