Market Indicators and Trends

Key market indicators, such as data center capital expenditures (capex), are showing signs of both growth and impending deceleration. While initial projections for 2024 indicate a 35 to 40% growth among major investors in data centers, it is expected to soften to about 15 to 20% by 2025. This shift raises important questions about sustainability, particularly highlighted by Nvidia's recent performance, which saw data center growth of over 400% in earlier quarters, but is anticipated to slow down significantly. Moving forward, analysts suggest that while the market won't see an outright drop in spending, sharp deceleration is likely as growth trends normalize.