Sterlite Tech shares jump 6% after co forays in AI-led data centres at IMC
Source: Business Standard
Shares of Sterlite Technologies gained as much as 6 per cent at Rs 128.45 per share on the BSE. The stock price of the company moved up on Wednesday after the firm announced its foray into the artificial intelligence (AI)I-led data centres segment with an integrated optical portfolio.
The company officially entered the AI-led Data Centre segment by showcasing its comprehensive range of integrated optical cable, connectivity, and interconnect offerings at the India Mobile Congress 2024. The Union Telecom Minister, Jyotiraditya Scindia, inaugurated the Make-in-India AI-DC portfolio.
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With 200 million ChatGPT users generating 1.6 billion AI queries per month, and projections indicating this number could exceed a billion by 2025, the demand for AI-led data centres is set to grow exponentially in India, the company said in a statement.
“As data centres shift to GPU-based servers, the need for fibre optic infrastructure is anticipated to increase significantly. India is emerging as a major hub for data centre ecosystems, with estimates suggesting a boost in GPU-based server capacity to nearly 520,000 GPUs by 2026. These GPU-centric facilities will require 36 times more fibre than traditional CPU racks due to higher server density and bandwidth demands, necessitating more compact, high-density optical fibre cables,” the company said.
Sterlite Tech has crafted a portfolio tailored to the specific cabling requirements of GPU-heavy data centres, it said.. The company’s optical fibre solutions are designed to deliver high bandwidth, low latency, and high density to effectively support the volume and complexity of AI workloads.
What are AI led data centres?
AI-led data centers are facilities that support artificial intelligence (AI) by providing the infrastructure and resources needed to train and deploy AI models and algorithms. They are designed to handle the large amounts of data processing and computing power required by AI workloads
Sterlite Technologies , a subsidiary of Twin Star Overseas, is a provider of optical and digital solutions. The company designs, manufactures and provides advanced offerings to build 5G, Rural, FTTx, Enterprise and datacenter networks.
Sterlite Tech share price history
Sterlite Technologies has underperformed the market year to date as it has fallen 15.5 per cent, while losing 21.3 per cent in the last one year. In comparison BSE Sensex has risen 13 per cent year to date and 23.5 per cent in a year.
The company has a total market capitalisation of Rs 6,106.62 crore. Its shares are trading at a price to earnings multiple of -26.72 times and at an earning per share of Rs -4.53.
At 11:52 AM, the stock price of the company was up by 3.59 per cent at Rs 125.45 a piece on the BSE. By comparison, the BSE Sensex was down 0.51 per cent at 81,398.92 level.
First Published: Oct 16 2024 | 11:59 AM IST
