Indian data center-related stocks rose up to 3% on May 29 after Nvidia beat quarterly sales expectations in March quarter as customers stockpiled its AI chips before fresh US curbs on China exports took effect.
Shares of the world's most valuable semiconductor firm still rose 5% in extended trading as investors digested news that the hit in the current fiscal second quarter was not as bad as feared, and Nvidia talked up demand for its new Blackwell chips from customers including Microsoft.
The rub off effect was seen in Indian data center-related stocks.
At 10:35 am on May 29, Anant Raj's shares were trading nearly 3% higher at Rs 531.65 apiece while the E2E Networks scrip on NSE was trading 3% higher at Rs 2,868.3.
Black Box's shares were trading 3.3% higher at Rs 489 apiece and Netweb Technologies India stock was trading 1.4% higher at Rs 2,024.
In April, E2E Cloud announced the deployment of India's largest NVIDIA H200 GPU infrastructure in Delhi-NCR and Chennai.
The NVIDIA H200 GPUs offer industry-leading performance, making them particularly desirable for training and fine-tuning large-scale AI models like DeepSeek and other advanced language models, said E2E Networks. "With total of 288.8 TB of GPU RAM and 2.4× higher memory bandwidth (4.8 TB/s), these clusters provide the necessary computational power to handle memory-intensive workloads with unmatched efficiency," the company said.
Nvidia, a bellwether of the artificial-intelligence market, expects revenue of $45 billion, plus or minus 2%, in the second quarter, compared with analysts' average estimate of $45.90 billion, according to data compiled by LSEG.
US restrictions on exports to China have effectively locked Nvidia out of the country, the largest market for chips, and as a result the company expects to lose out on $8 billion in sales this quarter alone.
Though unlikely to make up for the loss in Chinese revenue, a spate of new deals that Nvidia signed earlier this month in the Middle East could offer fresh avenues of growth - including the first phases of a 10-square-mile data center site in the United Arab Emirates that could eventually use 5 gigawatts' worth of AI infrastructure. The company has also announced similar deals in Saudi Arabia and Taiwan.
With inputs from Reuters
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