AI gives NextDC a boost, but Microsoft’s data demands conquer shorts
NextDC short sellers have been left scrambling as AI lights up retail investor interest, but long-term, fundies are betting hyperscale contracts will keep rolling.
Short sellers betting that data centre player NextDC was headed for a tough few years have been left scrambling after fanfare for anything linked to artificial intelligence captured the imagination of retail investors, who have sent the stock soaring 40 per cent in 2023.
Like many listed tech businesses, NextDC is participating in the frenzy sparked by Nvidia’s market-moving revelation that AI-based demand for its computer chips will outstrip its original sales forecast by more than 50 per cent.
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Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics. Connect with Jessica on Twitter. Email Jessica at jessica.sier@afr.com
