“Next DC (NXT) hosted its financial year 2023 AGM last week, but the company didn’t provide any new information at that meeting,” Raymond said.
“They reiterated the business is tracking well and noted the wave of AI infrastructure deployment that’s arriving in Australia, so they anticipate growth in onshore hosting for these premium environments to become a factor in 2024.
“NXT has a substantial development pipeline with new edge sites, core upgrades and overseas expansion all under development over the next few years.
“NXT is our key pick in the tech space.
“We see NXT well-positioned to double its earnings over the next few years, based simply on MW’s (Mega Watts) contracted but not yet billing and ongoing business digitisation.
“We see the supply/demand equation as favouring data centre providers over the next five years as data centres are a long lead time, early input required for the provision of cloud and artificial intelligence and demand is exceedingly strong,” Raymond said.
NextDC (NXT) – last 12 months
Source: nabtrade
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.