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Bill Ackman's Pershing Square (PS) said analyst estimates are underestimating the growth potential of major hyperscalers, arguing that consensus forecasts factor in elevated AI infrastructure spending while discounting its potential returns.
Pershing Square outlined the potential returns from AI infrastructure, estimating that building one gigawatt of AI data center capacity using the latest-generation chips currently costs approximately $40B to $50B.
"We believe a hyperscaler can generate $15B to $20B in annual revenue per gigawatt of compute capacity, which, at a 50% incremental operating margin, would generate $7.5B to $10B of incremental operating income, implying a pre-tax return on invested capital of 15% to 25%," the firm said.
seekingalpha.com - Ackmans pershing square says wall street estimates penalize hyperscalers for AI spending 