Nextdc Ltd (ASX: NXT) shares are pushing higher on Friday morning.
At the time of writing, the ASX 200 artificial intelligence (AI) stock is up 2% to $16.76.
Why is today a big day for the ASX AI stock?
Today is the day that NextDC shareholders gather for its annual general meeting.
But ahead of the main event, the data centre operator has released its speeches and a presentation.
In respect to the former, the company spoke extensively about how well it is positioned to benefit from the rise of artificial intelligence. Management described it as "one of the most profound transformations in the history of technology." The ASX 200 AI stock's CEO, Craig Scroggie, said:
AI is set to drive one of the most profound transformations in the history of technology, ushering in the Fourth Industrial Revolution. For NEXTDC, this moment is a defining opportunity.
We're not only positioned to meet the rising demand for AI but to set the benchmark for innovation, resilience, and sustainable data centre infrastructure.
Scroggie also highlights that research shows that the global data centre market is expected to reach $1 trillion by 2030. He adds:
Data centres are the backbone of the digital economy. McKinsey forecasts the global data centre market will reach $1 trillion by 2030, highlighting the extraordinary demand for digital infrastructure. Together, we are empowering enterprises to harness the full potential of the digital age—and for NEXTDC, that journey is only just beginning.
As we enter a new era defined by AI, our achievements over the past decade are merely the foundation. The momentum surrounding AI signals a transformational chapter for the digital infrastructure industry, one that promises unprecedented growth in the decade ahead.
Should you invest?
As things stand, there are a number of leading brokers that rate this ASX 200 AI stock as a buy.
One of those is Goldman Sachs, which has a buy rating and $18.50 price target on NextDC shares.
Commenting on its buy recommendation, the broker said:
We are particularly positive on NXT and are Buy rated given the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets.
We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.
