Computacenter profits nearly double on surging demand for AI infrastructure

Dan Coatsworth, head of markets at AJ Bell, lauded Computacenter after its profits nearly doubled.

He said: “Once seen as a mundane business at the boring end of tech, which if anything would be a victim of AI disruption, Computacenter continues to convince people it is a lasting beneficiary of the artificial intelligence push.

“Computacenter has delivered its best-ever set of first-half results, lifting the dividend by double digits and raising guidance.

“The reseller of IT hardware and services provider is seeing surging demand linked to the rollout of AI infrastructure, with North America becoming the engine of growth for the business. The UK arm, while not running at quite the same speed, is showing some signs of recovery.

“Computacenter is not only buying and sourcing kit for the big AI players but is also helping to design, build and maintain the necessary infrastructure as a cherry on top. That makes it a rare UK-listed beneficiary of the ongoing AI arms race.

“A record order book points to ongoing strong demand, but whether this is sustainable is open to question. Computacenter has sought to augment its position through the acquisitions of AgreeYa and Government Acquisitions Inc in the first half of the year, which have given it a foot in the door for US federal government contracts.

“Having recently ascended to the ranks of the FTSE 100 after more than doubling in value over the last 12 months, Computacenter’s ability to eke out further share price gains speaks to the quality of the latest results.”