TECH - Industrial Property Giant's Shift To AI Data Centers Drives Stock Rally investment Expert Says It Offers 'Robust Growth Opportunity' | Benzinga
Goodman Group, an Australian industrial property firm, is gaining favor with investors as it shifts its focus to AI data centers. This move has led to a significant surge in its stock price, with Citi predicting a double-digit growth in earnings.
What Happened: Goodman Group is converting its conventional warehouses into data centers to meet the soaring demand for AI infrastructure. This trend is expected to drive a “double-digit medium-term earnings growth,” as per Citi, which has included the Australian stock in its “Pan-Asia Focus list,” reported CNBC.
Data centers are essential for housing critical computing infrastructure and equipment. The demand for these facilities has seen a sharp rise due to the rapid expansion of AI applications, which require substantial computing power to run complex AI models.
“The conversion opportunity of Goodman’s assets from traditional warehouses into data centers presents a robust growth opportunity,” said Citi analyst Howard Penny. “As it progresses opportunities ...