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Nvidia shares rose nearly 3% on Wednesday, following an industry report projecting significant future investments in artificial intelligence (AI) data centers.
The report, published by consulting firm Bain, highlighted the “unprecedented levels of investment” companies will need to make in technology infrastructure to keep up with the rapid growth of AI.
Bain’s report suggests that costs for large data centers, currently ranging from $1 billion to $4 billion, could skyrocket to between $10 billion and $25 billion in the next five years.
This outlook is seen as a bullish sign for Nvidia, a leading AI chipmaker, as data center operators and hardware suppliers are expected to benefit from the increased demand for computing capacity.
As of 3:05 PM, Nvidia’s stock was trading 2.15% higher at $123.47.
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