Rolls Royce shares rise as firm reveals profit boost from data centres and defence spending

Rolls Royce shares rose after the aero-engineering firm projected an underlying operating profit between £4.7billion and £4.9billion this year, exceeding previous forecasts. This growth is driven by increased spending on defence and data centres. Simultaneously, research from A O Shearman indicates a significant investment wave targeting military technologies, energy, and the infrastructure required for AI. While demand for AI hardware grows, software companies face increased scrutiny regarding the potential for AI to replace existing systems.