Softcat lifts profit outlook amid AI and chip demand
Softcat raised its annual profit forecast following a 27.3% rise in first-half earnings. Strong AI demand and chip shortages drove the improved outlook.
Softcat plc, an IT services and infrastructure provider based in the United Kingdom, has raised its annual profit forecast following a surge in demand for artificial intelligence infrastructure. The company reported that early orders, driven by concerns over global memory chip shortages, significantly boosted its first-half performance. Following the announcement, shares in the firm rose by nearly 10% in early trading.
Despite the positive outlook, the company noted that constraints in the chip supply chain have introduced a level of uncertainty for the second half of the fiscal year. Softcat has capitalized on increased corporate spending on AI and automation, maintaining growth even as broader concerns regarding AI disruption impacted software stocks in February. The ongoing adoption of AI technologies has increased demand for memory chips, a trend that some industry experts believe could result in supply shortages lasting until 2030.
