Why Macquarie shares could be poised for an AI windfall

Macquarie may soon make a big chunk of profit from an AI company.

| More on:
Smiling man working on his laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Macquarie Group Ltd (ASX: MQG), the giant investment bank, looks set to make a lot of cash if or when AirTrunk is sold or goes through an initial public offering (IPO) process.

Macquarie is known for its prowess at investing in infrastructure and also achieving good fees for itself.

According to reporting by the Australian Financial Review, Macquarie's asset management division owns a large chunk of AirTrunk, which is a large data centre developer and owner. Macquarie invested when the business was worth $3 billion.

How much could Airtrunk be worth now?

AFR reporting suggested that AirTrunk might be worth between $13 billion to $14 billion now, according to institutional investors having a look at the company which is helping enable the growth of AI. It now has 11 data centres and 1.4 GW of capacity.

There is reportedly early interest from a number of private equity giants including Blackstone, KKR and Brookfield. These potential buyers could make sense because they have been buying other data centre operators in North America and Europe. They also have links to sovereign wealth funds, pension funds and lenders.

AirTrunk's earnings have reportedly increased by seven times since Macquarie invested, which is a good sign for the potential gains the investment bank could lock-in, which could help Macquarie shares.

Any buyer would need to keep investing in new data centres to keep up with the demand and ensure it remains the largest independent data centre operator in the Asia Pacific region.

Blackstone is reportedly an early favourite.

While an IPO is possible, it may be more likely that a new shareholder comes in and buys a 30% or 40% stake. But, if the price is right, there could be a full exit providing that financial conditions are also right.

While this will be a huge deal for Macquarie if something happens, it probably won't make or break its financial year.

Macquarie share price snapshot

Since the start of 2024, the Macquarie share price has risen 2.7%, compared to the S&P/ASX 200 Index (ASX: XJO) which is flat.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

A man holds his baby on his lap at the dining room table while he looks at his laptop screen earnestly.
Financial Shares

After its result, does Macquarie rate AMP shares a buy, hold or sell?

The financial services company released a strong second-quarter update on Monday.

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Red sell button on an Apple keyboard.
Financial Shares

ASX 200 financials was the best sector of FY25. But it's time to sell these 2 stocks, say experts

The ASX 200 financials sector gave investors a near-30% total return in the 2025 financial year.

Read more »

Happy woman working on a laptop.
Financial Shares

AMP share price jumps on strong Q2 update

Let's see what the financial services company reported for the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Financial Shares

The pros and cons of buying IAG shares this month

Is this the right time to invest in the insurance giant?

Read more »

man analysing share price
Financial Shares

ASX 200 financial services rivalry: Should I buy Hub24 or Netwealth shares?

Let's compare the pair.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Financial Shares

Forget CBA, Macquarie is tipping a 40% return for this ASX financial stock

Let's see why this stock could be a better buy than Australia's largest bank.

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Financial Shares

Up nearly 60% in a year, can Netwealth shares go higher?

Netwealth shares are up more than 200% over the past 5 years.

Read more »