Technology Stocks

Alphabet Inc (NASDAQ:GOOGL) Investment of $13 Billion In Data Centers Create A Windfall Gain For Chipmakers Advanced Micro Devices, Inc. And NVIDIA Corporation

Alphabet Inc’s (NASDAQ:GOOGL) stock lost 0.85% in the last trading session to close at $1,119.63. The stock is trading range bound in the past few sessions.

Alphabet Inc (NASDAQ:GOOGL)’s proposed a plan to set up Data Centers in the US with an investment of $13 billion could benefit chipmakers like Advanced Micro Devices, Inc. (NASDAQ:AMD) And NVIDIA Corporation (NASDAQ:NVDA), the Semicap equipment group, and Arista Networks. Advanced Micro, Nvidia, Semicap, and Arista would supply chips for the data centers. However, the share of the chipmakers may vary depending on the supply of chips.

Share of Chipmakers

Nvidia is likely to gain $3 billion per annum by supplying chips. Advanced Micro would gain a large chunk of the investment by supplying EPYC and GPUs for the data centers. It generated GPU sales of $105 million in the last quarter. According to Steve, Arista could gain a small portion of the investment in Data Centers.

Alphabet makes snail move in the hardware

The movement of Alphabet into the hardware is at a slow pace for several years now. The hardware product line of Alphabet includes Home smart speaker, Nest Thermostat, and Pixel smartphone. However, revenue from such hardware is meager. The company likely to generate considerable revenues from services including cloud, and robotaxis. Google generates a major chunk of revenues from advertising. The ad revenues are estimated at $29 billion in Q3. The company generates 85.8% of the revenues from advertising. Its other revenues are $4.6 billion.

GoCardless gets funding from Salesforce and Alphabet

The UK’s online payment startup – GoCardless receives funding of $75 million from Salesforce and Alphabet. The startup would use the funds for expanding payments line to the US. Other contributors to the investment include Notion Capital, Balderton Capital, Accel, Passion Capital, and Adams Street Partners.

GoCardless supports direct debit payments of businesses. Chief Executive Officer and Co-founder of GoCardless, Hiroki Takeuchi said the company focuses on recurring payments market – installments, invoicing, and subscriptions. The recurring payments account for 18% of the total payment volumes worldwide.

The Clientèle of GoCardless includes The Financial Times, The Guardian, and Sage, and Box Box. The company processes transactions worth $10 billion every year for over 40,000 merchants. The also conducts business operations in Australia and Europe. The company also plans to open an office in Spain by the end of this year as part of its global expansion plans.

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