Data Centre Stocks Shine on Nvidia’s AI Earnings Boost — Key Movers on the ASX200

2 min read | May 29, 2025 11:32 AM AEST | By Team Kalkine Media

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Data Centre Stocks Shine on Nvidia’s AI Earnings Boost — Key Movers on the ASX200 — Image source: shutterstock

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Highlights

Nvidia’s AI earnings spark gains in data centre stocks

(ASX:NXT) NextDC leads with a 3.5% rise on the ASX200

Rising demand for AI drives optimism despite global chip concerns

Data centre stocks on the ASX200 showed solid gains following a strong earnings report from Nvidia (NASDAQ:NVDA), a global leader in AI accelerator chips. Nvidia’s results highlighted growing demand for artificial intelligence technology, prompting confidence among investors in companies supporting this rapidly expanding market.

NextDC (ASX:NXT) was one of the standout performers in the data centre space, advancing 3.5% shortly after market open. The company, which operates large-scale data centres, has benefited from increased demand for cloud computing infrastructure as AI applications become more mainstream. DigiCo Infrastructure REIT (ASX:DCO), which invests in data centre real estate, also recorded a notable rise of 1.7%. Meanwhile, Megaport (ASX:MP1), a provider of network connectivity software crucial to data centres, moved up 1.6%.

Nvidia’s CEO, Jensen Huang, described the AI computing sector as poised for “exponential growth,” signaling ongoing opportunities in the technology landscape. This outlook helped counterbalance concerns about the slowdown in chip manufacturing in China, a key global player in semiconductor production. Nvidia’s sales performance, which met analysts’ expectations, reassured market participants that the AI sector continues to expand despite these geopolitical and supply chain challenges.

The positive momentum in data centre stocks also reflects broader trends seen in ASX dividend stocks, where companies delivering reliable returns and growth potential attract increasing attention. As AI technologies gain traction, infrastructure providers like those in the data centre ecosystem are becoming integral components of the evolving digital economy.

Investors tracking the S&P/ASX200 index have witnessed a shift as technology and data-related companies play a bigger role in market movements. The rising influence of artificial intelligence and cloud computing is driving a reshaping of the index, with data centre stocks contributing to its dynamic performance.

The recent Nvidia earnings update has injected fresh enthusiasm into the data centre segment on the ASX200, underscoring the importance of AI-driven growth in shaping market trends. Companies such as NextDC (ASX:NXT), DigiCo Infrastructure REIT (ASX:DCO), and Megaport (ASX:MP1) are well positioned to capitalize on this momentum, making them key players to watch in the evolving tech landscape.

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