2323 GMT - A key question raised by the performance of DeepSeek and the potential emergence of other cheap AI models is whether they will affect demand for data centers including those operated by NextDC, Citi analyst Siraj Ahmed says. He doesn't anticipate any short-term impact on contracts or demand, and reckons that hyperscalers will continue to deploy capacity in response to customer demand. However, Ahmed tells clients in a note that NextDC shares could still suffer and that there are possible risks to longer-term data-center demand. Citi has a last-published A$20 target price and buy rating on NextDC. Shares are down 8.9% at A$14.49. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
January 27, 2025 18:23 ET (23:23 GMT)
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