AI Boom Fuels Surge in Computacenter Shares, Boosting Founders' Fortunes

Founders of British computer company Computacenter have seen their fortunes grow by over £150 million as the company capitalizes on the artificial intelligence boom. Computacenter's shares surged nearly 10% in early trading on Monday, following the company's announcement of a fourth upgrade to its annual profit forecasts this year.

The Hertfordshire-based business, a prominent technology stock on the FTSE 100, is experiencing robust demand for its products and services from clients constructing the data centers essential for AI advancements. The company, recognized as a significant UK-listed beneficiary of the AI sector's expansion, now anticipates reporting profits of at least £425 million for the year, a notable increase from the £380 million target set less than two months prior.

This rise in share value saw Computacenter's stock climb by as much as 455p to 5045p. Over the past year, the share price has increased by 85%, valuing the company at nearly £5.4 billion.

The rally has significantly boosted the wealth of founders Peter Ogden and Philip Hulme. Ogden's stake, representing nearly 25% of the company, is now valued at £1.3 billion, while Hulme's 7.6% holding is worth £405 million.

Analysts attribute Computacenter's success to its role in the burgeoning AI infrastructure market. "Computacenter is effectively acting as a middleman in the AI infrastructure build-out, procuring, assembling and installing the complex hardware required to run artificial intelligence models," said Russ Mould, investment director at AJ Bell. He also noted that while this work can be lower margin than software sales, the company's growth trajectory has been strong.

Founded in 1981, Computacenter evolved from a traditional computer company to an IT services contractor for large businesses. It expanded into Europe and the US before listing on the London Stock Exchange in 1998. The company's focus on data center hardware and services intensified in 2022 with a significant contract, believed by analysts to be with Meta Platforms, for its augmented reality project infrastructure. The AI boom propelled Computacenter into the FTSE 100 index in June of this year.

In its latest update, Computacenter reported that its third-quarter performance exceeded expectations, building on a strong first half. The company's order backlog increased from £9.3 billion at the end of June to £12.6 billion by the close of September. Business in the third quarter was primarily driven by hyperscale and neocloud customers in North America and the UK.

Peter Ogden, a former banker at Morgan Stanley, served as chairman of Computacenter until 1998 and remains a non-executive director. Philip Hulme also continues on the board after stepping down as executive chairman in 2001. Beyond Computacenter, Ogden is a co-owner of MotorSport Vision, which operates several UK racing circuits, and his children acquired a controlling share of his hometown football club, Rochdale, in May 2024.