with Lazar Naiker, Research Analyst, AGF Investments
AGF Investments analyst Lazar Naiker explains the link between artificial intelligence and power consumption and what it could mean for investors.
Key Points Discussed:
Early Winners of the AI Revolution:
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- Semiconductors are a clear early winner due to the demand for graphic processing units (GPUs) essential for AI capabilities.
- Next Stage of AI Infrastructure Development:
- Other sectors will benefit by providing technologies and equipment for developing data centers.
- Industrial Opportunities:
- Electrical equipment sector sees significant opportunities.
- AI Data Centers vs. Traditional Data Centers:
- AI data centers utilize GPUs instead of CPUs.
- GPUs consume 3 to 5 times more power than CPUs.
- AI data centers can scale from tens of megawatts to gigawatt scale.
Beneficiaries in the Supply Chain:
- Clean Energy Supply:
- Power consumption of data centers expected to double to more than 35GW by 2030.
- Nuclear power and gas turbines identified as key energy suppliers.
- Electrical Infrastructure:
- Essential components include transformers, cables, and switches.
- High voltage transformers in short supply, leading to improved pricing and margins.
- Cooling Technologies:
- Transition from traditional air cooling to more efficient liquid cooling due to increased power consumption and heat generation.
- Long-term Growth Potential:
- The development of AI infrastructure will benefit both technology companies and the industrial sector.
- Significant growth is expected in order books and revenues, indicating ongoing opportunities.
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