Ro_Patel
Oct 2, 4:35 PM
BoA upgrades Y26–CY30E AI data center systems TAM f/cast from
$1.8T (+33% CAGR) to
$2.2T (+40% CAGR) by CY30E, driven by agentic AI adoption, enterprise AI deployments, & public/private AI competition
Top US hyperscale/neocloud & China cloud capex expected to reach
$2.0T–
$3.0T by 2030E, representing annual data center deployments of 35–45 GW/year (at ~
$55–60bn/GW). Aggregate debt financing (~
$370B) remains modest against FCF generation
Data Center Breakdown (CY30E):
- AI Accelerators: ~
$1.5T TAM
- Memory: DC Memory sales reaching ~
$1.3T TAM (out of ~
$2.0T total memory market)
- Networking & Optics: ~
$400B TAM, driven by scale-up/out domain extension & CPO/NPO/AEC adoption
- CPUs: ~
$210B TAM (AI CPUs representing ~
$180B)
SOX trades at 21x Fwd P/E (12% below its post-ChatGPT median of 24x), offering compelling valuation relative to >40% projected EPS growth
$NVDA $MU $MRVL $LRCX $AVGO
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