{"id":113056,"date":"2025-09-02T11:38:12","date_gmt":"2025-09-02T11:38:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/113056\/"},"modified":"2025-09-02T11:38:12","modified_gmt":"2025-09-02T11:38:12","slug":"revolutionary-wilsons-declares-nextdc-a-massive-ai-winner-tom-richardson","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/113056\/","title":{"rendered":"‘Revolutionary’: Wilsons declares NextDC a massive AI winner – Tom Richardson"},"content":{"rendered":"

NextDC (ASX: NXT<\/a>) can profit from soaring demand for data centre capacity to deliver advances linked to artificial intelligence over the next three years, according to Wilsons Advisory.\u00a0<\/p>\n

In a September 1 research note, Wilsons declared NextDC a “mandatory infrastructure holding” as the data centre owner converts a packed forward order book into future billing and profits.\u00a0<\/p>\n

“We remain attracted to NextDC’s more than 95% recurring revenue, long-term customer contracts, structural demand drivers, and incremental expansion opportunities at home and abroad,” Wilsons told investors.\u00a0<\/p>\n

\"NextDC<\/p>\n

NextDC expects to invest capex of up to $2 billion this financial year as demand for data centre capacity soars.\u00a0<\/p>\n

The Brisbane-headquartered company expects to invest between $1.8 billion and $2 billion in financial 2026, as it races to build capacity across Australia and Asia for an industrial boom in digital services related to AI.\u00a0<\/p>\n

“We remain comfortable with NextDC\u2019s ability to recycle capital and develop new assets to drive medium and long-term growth,” Wilsons said.\u00a0<\/p>\n

Still printing losses<\/p>\n

For financial 2025, NextDC’s loss widened to $60.5 million on revenue up 6% to $427.2 million. Still, Wilsons is urging investors to look past losses tipped to continue into the future to focus on a structural growth story.\u00a0<\/p>\n

“This result has cemented NextDC\u2019s place as a material, scale-player in the global data centre sector. The disclosure of a 3GW development pipeline, split evenly between Melbourne, Sydney and International, suggests NextDX has numerous, sizeable opportunities ahead of it,” the broker argued.\u00a0<\/p>\n

Last Thursday, shares surged 17.4% to $16.50 as the market digested management’s plans to aggressively expand its data centre empire.\u00a0<\/p>\n

The company’s debt facilities now reach $6.4 billion, which is subject to a gearing ratio, which means total debt must not exceed a ratio related to total cash less total assets.\u00a0<\/p>\n

Wilsons expects NextDC’s investment spree to translate into a normalised loss of $126.5 million on sales of $486.4 million in financial 2026, and has a 12-month share price target on the stock of $19.98.\u00a0<\/p>\n

According to Dow Jones, of the 17 analysts covering the stock, 11 have a buy rating, with four an overweight rating, and two a hold. The median price target is $19.74 with a high target of $28.66 and low rating of $16.60.\u00a0<\/p>\n

Shares fetched $16.69 on Thursday afternoon.\u00a0<\/p>\n

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