Sectors: Data Centres
I read your notes about the pullback in uranium stocks, writing: “slower data-centre construction could temper expectations for incremental nuclear-power demand. Their weakness on Monday alongside Asian semiconductor stocks illustrates how closely the market has linked the themes.”
Have investors forgotten that there are 440 nuclear reactors that were here well before data centres, with a further 120 planned, all of which are useless without uranium?
Together with the rotation out of precious metals, this market is making less and less sense to me.
Fundamentals appear to have become the rationale of last resort?
NEXTDC (NXT) and Goodman Group (GMG) provide the ASX’s most direct exposure to the data-centre build-out. NXT is the purer play, operating 15 Australian facilities with a 565MW forward order book and investing around ~$2bn in FY26 to meet hyperscaler demand, while GMG has rapidly evolved from a traditional industrial property group into a global data-centre developer, with data centres accounting for around 73% of its $18bn development pipeline and a 6.4GW power bank across 13 major cities.
NXT +2.14%: A beat to FY26 expectations and, more importantly, guiding to another sizeable step-up in earnings as its enormous development pipeline converts into billable capacity. Earnings came in of consensus, while FY27 guidance was comfortably above the market. The capex numbers remain eye-watering, but with contracted customers underpinning much of the expansion, NXT is moving from data centre capacity to actually monetising it.
Mg Guys.
The ETF provides an interesting exposure to the backbone of AI’s global expansion, and in our view, AINF offers a more direct play on the AI buildout itself, rather than the increasingly crowded and volatile software layer.
It’s not often we see a company raise capital and rally sharply, but that was the experience for Southern Cross Electrical Engineering (SXE) yesterday following a strongly supported $150 million institutional placement. The response highlights the market’s confidence in one of the ASX’s leading data-centre infrastructure plays.
It has been a big couple of weeks for IREN after the company announced a five-year, US$3.4bn AI cloud contract with Nvidia, a deal that materially improves revenue visibility and gives its neocloud strategy a major endorsement. Nvidia has also been granted the right to buy up to 30 million IREN shares at $US70, representing a potential $US2.1bn investment. For a company still transitioning from bitcoin mining toward AI infrastructure, this is a significant validation point.
Dear James and Team
Hi guys
I’ve just signed up for another 3 years – love your service. I’ve made some good profits so far this year but it’s time to do my ‘tidy up’ of investments before end of financial year. I’ve been through your website and assessed all the laggards in my portfolio, ready for selling before June. I have assumed that any marked Active in your portfolios are at least holds.
With that in mind, I was hoping to get your views on prioritising the following stocks. My problem children are CAR, CSL, HLS, NXT, RDY (It still says active but I think you have turned negative on this), SHL, TWE and ZG:US
I have a fairly long term view so don’t mind holding if there is good potential to recover well and provide a respectable annualised % return in the next 5+ years. PLS was a great example where your advice encouraged me to hold at a loss for quite a while and I only recently sold out for an excellent return.
