Shares of Computacenter surged 4.8% to 5,465 pence on Tuesday, briefly touching a 52-week high of 5,500 pence, after Peel Hunt upgraded its rating to 'buy' from 'add' and lifted its price target to 6,000 pence from 4,400 pence.
The London-based IT services company maintained its full-year adjusted profit before tax projection at £324 million, equivalent to $440.38 million, as it positioned itself to benefit from elevated demand for AI infrastructure.
The upgrade followed a sharp increase in Nvidia's second-quarter revenue, which rose 106% year-over-year to $96.2 billion for the three months ended July 26. The company's data center segment revenue surged 117% to $89 billion, reflecting robust spending by hyperscale cloud providers and enterprise clients on AI-related hardware.
Peel Hunt cited expectations of a 'materially higher' fiscal 2027 spending cycle for key clients compared with fiscal 2026, driven by continued investments in AI and data center capacity.
Computacenter's gains contrasted with a modest decline in the FTSE 100, which fell 0.1% to 10,878.12 points, as US inflation data for July exceeded forecasts. The US Personal Consumption Expenditures price index rose 3.7% annually, above the consensus estimate of 3.6%. Nvidia's third-quarter revenue guidance of approximately $108 billion, versus a consensus of $104.2 billion, further reinforced expectations for sustained AI infrastructure demand.
