In short: AI racks draw 50-125% more power — power-supply ASPs rising ~40%/yr for four years at higher margin.
Advanced Energy makes the power supplies that feed AI server racks. Because each Nvidia chip or rack draws 50-125% more power than before, the price of each power unit it sells (its ASP, average selling price) is rising about 40% a year — and Sacerdote expects that to continue for four straight years, at higher margins.
It's another "decommoditization" pinch point: a once-boring component that AI's extreme power demands have turned into a high-growth, higher-margin product.
56:10But the story like in the power supplies, every Nvidia chip or rack uses n 50 to 125% more power. And like literally that drives the ASPs of Delta and Advanced Energy. I just I think it's it's I can't believe these stories when I hear I'm like wait so your ASPs are going to like go up 40% for the next four years in a row and it's higher margin.
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