Massive investments in data centers are driven by our growing need for data storage and processing power and the enormous requirements for artificial intelligence (AI) software. While some data centers are relatively small, others are larger than 100,000 square feet (often millions of square feet). Tech titans like Microsoft, amazon, alphabetand dead These are usually built into superbands Data centers.
For example, in 2025, Meta will begin construction on a 715,000-square-foot, $800 million campus in South Carolina, and Microsoft will begin a $1 billion project in La Porte, Indiana.
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As shown below, Hyperscale positions have been rising recently.
This number exceeded 1,000 in 2024 and is expected to grow by 120 to 130 annually. These centers require infrastructure such as servers, storage, and racks, so investors should be excited about this opportunity.
Dell Technologies (NYSE: Dell) It is a major supplier to the industry, along with Super micro computer. Supermicro is facing some well-documented challenges right now, and Dell may be the main beneficiary. Here are some things to know.
Supermicro’s setbacks are well documented, so I won’t talk about them too much. Here is a brief timeline:
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August: Hindenburg Research issues a scathing short report, and Supermicro postpones its annual 10-K filing.
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September: Nasdaq I notified the company that it could be It has been deleted To delay its submission.
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October: Supermicro’s audit firm, Ernst & Young, resigns.
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November: The company postponed its quarterly 10-Q filing.
As of this writing, the stock is trading 84% below its 2024 high.
None of these weapons smoke alone; However, these are serious concerns.
It makes sense for a data center operator to cut through the noise and choose Dell for its infrastructure needs over Supermicro, which reported sales of $5.3 billion in the fourth quarter of fiscal 2024 ($15 billion for the fiscal year), with 64% attributable to Big data centers. Dell’s Infrastructure Solutions Group generated $11.6 billion in revenue in its most recent quarter, so taking billions of dollars in revenue from a competitor would be a huge boon.
Dell’s recent results are strong, but what analysts estimate for the next several years is even more exciting. Revenue grew 9% in the second quarter of fiscal 2025 to $25 billion, while diluted earnings per share (EPS) rose 86% to $1.17. As expected, Infrastructure Solutions Group, which serves data centers, achieved record sales of $11.6 billion with impressive 38% year-over-year growth.
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