Data center sales accounted for more than $22.6 billion, NVIDIA Corporation(NASDAQ:NVDA) had total revenue of $26 billion, the highest ever for an artificial intelligence (AI) chipmaker.
“The next industrial revolution has begun. Businesses and countries are partnering with Nvidia to transform traditional data centers with accelerated computing and build a new type of data center: AI factories to produce a new commodity: artificial intelligence,” said Jensen Huang, founder and CEO of Nvidia. “AI will enable massive productivity gains across nearly every industry, helping companies become more cost- and energy-efficient while expanding revenue opportunities.”
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Nvidia's revenue grew 18% from the fourth quarter of last year and 262% from the same period in 2018. The company's data center division grew 427% year over year, which Huang attributed to “strong and accelerating demand” for its Hopper platform.
Nvidia unveiled its next-generation Blackwell platform in March and expects the new chips to further boost second-quarter revenue.
The overall data center market continues to expand. According to accounting firm PwC, data center jobs nationwide grew 20% from 2.9 million to 3.5 million between 2017 and 2021, outpacing the 2% increase in overall U.S. employment. For every direct data center job, 7.4 ancillary jobs are created.
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According to NAIOP, vacancy rates are at an all-time low of about 3% as businesses and the public embrace AI. Even without AI, data creation is thriving, with about 200 million emails sent and 350,000 posts made to X every minute. More than 100,000 hours are spent on Zoom calls every minute around the world.
“This level of activity requires significant supporting infrastructure,” Carrington Brown, senior managing director of development at Affinius Capital, told NAIOP.
Institutional investors looking to boost profits are also starting to move in. Equinix and Digital Realty are leaders in this space, followed by private-equity-backed firms such as Carlyle, KKR, Macquarie, BlackRock and Blackstone, according to Pat Lynch, managing director of CBRE's Data Center Solutions Group.
Private equity firms were involved in about 90% of data center deals in the first half of 2022. McKinsey & Co. expects the data center industry to grow from 17 gigawatts (GW) in 2022 to about 35 GW by 2030. Data centers are measured in megawatts, not square feet.
“We are in the midst of the largest data center development boom in the history of our industry,” Kurt Holcomb, executive vice president at JLL, told NAIOP. “The industry has consistently experienced double-digit compound annual growth rates year after year. This growth is driven in part by the imbalance between supply and demand caused by COVID shutting down data center development for several months. The adoption of AI has only boosted already robust demand. Therefore, despite power supply constraints, we expect this boom to continue for the next two to three years.”
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The article “Nvidia Powers Up: AI Revolution Drives $226 Billion In Data Center Sales” originally appeared on Benzinga.com.
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