Data Center Demand ‘Isn’t Slowing Down.’ That’s Why Analysts Say Nvidia Stock Is Still a ‘Strong Buy.’

Earlier this year, reports emerged that Microsoft (MSFT) was “slowing or pausing” some of its data center construction. This served as a major blow to artificial intelligence (AI)-related investments, leading some skeptics to declare that the AI “bubble” could soon burst. 

Months later, and heavy hitters Nvidia (NVDA) and Microsoft (MSFT) both are confident that data center demand remains strong. Senior Director of Corporate Sustainability at Nvidia Josh Parker said at a recent conference that “We haven’t seen a pullback,” and that compute and energy demand is only going to increase due to AI.