Prologis Capitalizes on AI Data Center Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy NVDA?
Source: Yahoo Finance
- Data Center Investment Opportunity: According to McKinsey Research, a staggering $7 trillion is needed globally for data centers by 2030 to keep pace with computing power growth, and Prologis is actively developing modern AI-enabled buildings to capture this massive market share.
- Future Investment Potential: Prologis anticipates building up to 10 GW of data center capacity over the next decade, requiring an investment of $30 billion to $50 billion, with this investment projected to create $7.5 billion to $25 billion in shareholder value, highlighting the high return potential of data center developments.
- REIT Advantages: As one of the world's largest real estate investment trusts, Prologis boasts a portfolio of approximately 5,900 buildings totaling 1.3 billion square feet, and its extensive development experience and land bank effectively support future growth and data center construction.
- High-Yield Development Projects: While the development costs for data center projects range from $150 million to $500 million, significantly higher than traditional warehouses costing between $25 million and $75 million, the development yields are also much higher at 7.5% to 10%, making Prologis's investments in the AI sector particularly attractive.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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