data center News & Analysis
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Semtech (SMTC) Launches 224G Optical Chips for AI Data Centers
Semtech Corporation (SMTC) launched a range of 224 Gbps optical chips designed for AI data center applications, facilitating 800G, 1.6T, and 3.2T transceivers. This development aims to improve data transfer efficiency within AI/ML clusters and hyperscale data centers. Semtech reported record net sales of $1.05 billion for fiscal 2026, marking a 15% year-over-year increase, while non-GAAP adjusted diluted earnings per share rose to $1.71. These advancements position Semtech as a significant player in addressing performance issues in AI infrastructure.
Read More: Semtech (SMTC) Launches 224G Optical Chips for AI Data Centers
Semtech (SMTC) Achieves Record $291M Revenue with 16% Growth
Semtech Corporation (SMTC) reported first-quarter revenues of $291 million, an increase of 16% year-over-year. Non-GAAP adjusted diluted EPS climbed 34% to $0.51 per share. Following these results, UBS raised its price target for SMTC from $165 to $225 and maintained a Buy rating, citing strong demand for 800G optical products. The company anticipates data center growth to accelerate as new revenue streams are introduced, suggesting a positive environment for SMTC in the near term.
Read More: Semtech (SMTC) Achieves Record $291M Revenue with 16% Growth
OpenAI (OPENAI) Considers Ohio Data Center Leasing with Nvidia Support
OpenAI (OPENAI) is reportedly considering leasing a data center in Ohio with backing from Nvidia (NVDA). This potential move is significant as it may bolster OpenAI's infrastructure capabilities. The report highlights the strategic partnership with Nvidia, which could enhance computational power for AI applications. While no specific financial figures or timelines are provided, this development could influence market perceptions of OpenAI's growth and operational capacity.
Read More: OpenAI (OPENAI) Considers Ohio Data Center Leasing with Nvidia Support
Meta (FB) Partners with Reliance for AI Data Center in India
Meta Platforms Inc. (FB) has announced a partnership with Reliance Industries to develop an AI data center in India. This collaboration aims to enhance data processing capabilities in the region, signifying Reliance's commitment to expanding its digital infrastructure. The deal may bolster Reliance's position in the growing AI market and improve operational efficiency through augmented data management. By leveraging Meta's technological expertise, both companies may benefit from reduced costs and improved service delivery in AI applications.
Read More: Meta (FB) Partners with Reliance for AI Data Center in India
Meta (META) Partners with Reliance for AI Data Center Initiative
Meta Platforms (META) has announced a partnership with India's Reliance for the development of an AI data center. The collaboration aims to enhance AI capabilities and infrastructure within India. This venture may significantly impact Meta's operational footprint in Asia and contribute to the growing AI market in the region. The partnership aligns with Reliance's commitment to digital initiatives, potentially increasing both companies' market positions.
Read More: Meta (META) Partners with Reliance for AI Data Center Initiative
Hut 8 (HUT) Prices $4.25 Billion Notes for Texas Data Center
Hut 8 Mining Corp's subsidiary has issued $4.25 billion in notes to fund its new Texas data center. This funding is crucial for Hut 8 (HUT) as it expands its operations, which is likely to impact its financial outlook positively. The move signifies a strategic shift towards enhancing operational capacity in the rapidly growing sector of cryptocurrency mining. This significant capital raise could influence investor sentiment and market positioning for Hut 8 amidst increasing competition in the industry.
Read More: Hut 8 (HUT) Prices $4.25 Billion Notes for Texas Data Center
Marvell (MRVL) Price Target Raised to $210 on Data Center Growth
Stifel has raised Marvell Technology's (MRVL) price target to $210, citing expected growth in the data center segment. This adjustment reflects analysts' optimism about Marvell's expanding portfolio and its impact on revenue. The increase in the price target could influence investor sentiment and stock performance. As data center demand rises, Marvell's position may strengthen within the semiconductor industry.
Read More: Marvell (MRVL) Price Target Raised to $210 on Data Center Growth
Black Hills Corp (BKH) Price Target Raised to $91 Amid Microsoft Deal
Analysts at BMO Capital have raised the price target for Black Hills Corporation (BKH) to $91 from $84, maintaining an Outperform rating. This revision follows Microsoft's acquisition of 3,200 acres for a data center in Cheyenne, Wyoming, which is expected to drive growth for Black Hills. The company anticipates providing energy to power the data center, part of a broader pipeline totaling more than 3 GW, including 600 MW by 2030. In their recent earnings report, Black Hills reported adjusted earnings of $135.1 million, or $1.79 per share, compared to $134.3 million, or $1.87 per share, in the same quarter last year.
Read More: Black Hills Corp (BKH) Price Target Raised to $91 Amid Microsoft Deal
AMD Stock Revenue Climbs 38% to $10.25 Billion in Q1
Advanced Micro Devices (AMD) reported Q1 revenue of $10.25 billion, a 38% year-over-year increase, exceeding analyst expectations of $9.89 billion. Adjusted earnings per share rose 43% to $1.37, surpassing the forecast of $1.29. Data center CPU revenue surged 57% to $5.8 billion, driven by increasing demand in the AI market, with projections indicating a total addressable market of $120 billion by 2020. AMD anticipates continued growth, with data center CPU revenue expected to increase by 70% in Q2 and averaging rising prices for next-generation CPUs.
Read More: AMD Stock Revenue Climbs 38% to $10.25 Billion in Q1
Anthropic (ANTH) Secures SpaceX Data Center for AI Expansion
Anthropic (ANTH) has reached an agreement to rent all AI capacity at SpaceX's Colossus data center located in Memphis. This deal is significant as it provides Anthropic with enhanced computational resources to support its AI model, Claude. The specifics of the financial terms of this agreement have not been disclosed, but it marks a notable collaboration between the two companies in the growing AI sector. Such partnerships are critical as competition intensifies in the AI market, potentially impacting future growth prospects for Anthropic and related tech stocks.
Read More: Anthropic (ANTH) Secures SpaceX Data Center for AI Expansion
Meta (META) Partners with Morgan Stanley and JPMorgan for El Paso Deal
Meta Platforms (META) has engaged Morgan Stanley and JPMorgan to assist in a data center deal in El Paso. This collaboration indicates Meta's ongoing investments in infrastructure, which could enhance its operational capabilities. Details regarding the financial terms and project scope have not been publicly disclosed, but such partnerships typically influence market perceptions of company's technological advancements and competitive positioning. Market reactions could be affected positively due to increased infrastructure investments by major tech firms.
Read More: Meta (META) Partners with Morgan Stanley and JPMorgan for El Paso Deal
Amazon's (AMZN) Chip Business Hits $20B Revenue Run Rate
Amazon's (AMZN) chip business achieved an annual revenue run rate exceeding $20 billion in Q1 2026, reflecting a nearly 40% sequential growth and triple-digit year-over-year increase. CEO Andy Jassy indicated that if the chips division operated independently, it would boast a run rate of $50 billion. Amazon has secured over $225 billion in revenue commitments for its Trainium products, with significant capacity reserved for Trainium3 and Trainium4. This rapid scaling positions Amazon among the top three data center chip businesses globally, impacting the competitive dynamics within the semiconductor industry.
Read More: Amazon's (AMZN) Chip Business Hits $20B Revenue Run Rate
Atlassian (TEAM) Posts 29% Gain After Surpassing Q3 Earnings Estimates
Atlassian (TEAM) shares surged more than 29% following better-than-expected fiscal third-quarter earnings. The company's adjusted earnings per share reached $1.75, exceeding the $1.32 estimate, and revenue totaled $1.79 billion, surpassing the $1.69 billion forecast. Cloud revenue increased by 29% year-over-year to $1.13 billion, above the $1.08 billion estimate, while data center revenue was reported at $561 million against an expectation of $515 million. Furthermore, Atlassian raised its full-year guidance for cloud and data center revenue growth to 26.5% and 21.5%, respectively.
Read More: Atlassian (TEAM) Posts 29% Gain After Surpassing Q3 Earnings Estimates
Rambus (RMBS) Elects 4 Directors at Annual Meeting with KPMG Ratified
At its 2026 Annual Meeting, Rambus (RMBS) stockholders elected four Class 1 directors and ratified KPMG LLP as the auditor. The meeting established a quorum, with approximately 91.9% of shares outstanding represented. CEO Luc Seraphin highlighted record annual revenue, earnings, and cash generation for 2025, supporting strategic investments. The company aims to capitalize on AI and data center demand for profitable long-term growth.
Read More: Rambus (RMBS) Elects 4 Directors at Annual Meeting with KPMG Ratified
Related Digital Secures $16 Billion Financing for Oracle (ORCL) Center
Related Digital has secured financing for a $16 billion Oracle (ORCL) data center project in Michigan. This investment signifies a major infrastructure expansion by Oracle, aimed at enhancing its cloud computing capabilities. The financing will facilitate the construction of the facility intended to support increased demand for data storage and processing services. Such large-scale investments can positively impact related technology sectors and local economies.
Read More: Related Digital Secures $16 Billion Financing for Oracle (ORCL) Center
TikTok (not TikTok) to build second billion-euro data centre
TikTok announced plans to construct a second data center in Finland, with an investment amounting to one billion euros. This expansion is part of TikTok's strategy to enhance its data privacy measures and support its growing user base in Europe. The move could bolster the company's operational capabilities and position in the European market. Given the increasing scrutiny on data privacy, such investments may impact regulatory perceptions and user trust in TikTok (not TikTok).
Read More: TikTok (not TikTok) to build second billion-euro data centre