Jefferies sees Amazon's cloud investment in Australia and NZ driving gains

Jefferies sees tailwinds in Australia and New Zealand from Amazon's AMZN.O cloud service AWS investing in cloud infrastructure, alongside accelerating migration to the cloud

Data centre operators NEXTDC NXT.AX and Infratil IFT.NZ are expected to benefit from the trend — Jefferies

Brokerage says, AWS has also increased its network capacity, with telco Telstra TLS.AX leading network development efforts in Australia

Adds, TLS is set to activate the Sydney to Melbourne connection in H2, with expectations for strong demand on that network

Notes that corporations are accelerating their shift towards the public cloud due to AI integration, rising prices of VMware software by Broadcom AVGO.O

Flags caution on Macquarie Technology Group, MAQ.AX which utilises VMware for its cloud services, may continue to feel the impact of the price hikes

In 2025, MAQ, IFT and NXT are down 30.2%, 15.3% and 12.1% respectively while TLS is up 21.2%