Nvidia stock (NVDA) rose more than 2% on Wednesday after an industry report projected “unprecedented” levels of investments in artificial intelligence, a bullish sign for the AI chipmaker.
Consulting firm Bain’s annual technology report published on Wednesday projects that companies will need to make “unprecedented levels of investment” in technology infrastructure to stay on top of the artificial intelligence boom.
“If large data centers currently cost between $1 billion and $4 billion, costs for data centers five years from now could be between $10 billion and $25 billion,” the report said.
The firm’s research also states data center operators and hardware suppliers will enjoy a short-term windfall as companies and governments splurge on computing capacity.