NEXTDC LTD (NXT.AU) shares are soaring 5.71% in intraday trading, reaching a five-week high. The surge comes as major tech companies forecast strong growth in cloud business and increased spending on data centres, boosting investor confidence in data centre-focused stocks.
The rally is part of a broader trend affecting Australian data centre-related companies. This uptick follows Microsoft's forecast of strong growth for its cloud business and Meta's announcement of expected increased spending on new data centres to support its AI initiatives. As a result, the tech sub-index on the Australian Stock Exchange is up approximately 3%, outperforming the flat benchmark ASX200.
NEXTDC, a prominent data centre developer and operator in Australia, is benefiting significantly from this positive sentiment. The company's stock gain aligns with its peers in the sector, with Goodman Group jumping as much as 4.3% and DigiCo rising up to 8.2%. This surge underscores the market's growing confidence in data centre-focused businesses as tech giants continue to expand their cloud and AI capabilities.
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