Core Insights - The "AI cloud" trade is returning as funds flow back into pure play compute supply-side stocks after a period of volatility since 2026, with CoreWeave up over 40%, Nebius up nearly 30%, and Iren up over 53% [1][5]. Group 1: Market Dynamics - The rebound is driven by improved earnings expectations and upward price movements, with strong signals from the chip sector providing external validation for the "AI cloud" [4]. - Recent performance from TSMC, which exceeded expectations and raised its 2026 capital expenditure forecast, reinforces the view that AI demand is still expanding, alleviating risks associated with the AI cloud service model [4][8]. Group 2: Company Performance - Iren, a vertically integrated digital infrastructure company, is expected to see sales growth of approximately 120% this year and an additional 151% next year, benefiting from rising demand for compute and power from AI and data-intensive workloads [5][7]. - Nebius, positioned as an AI-focused infrastructure and cloud service provider, is projected to experience a staggering 376% sales growth next year due to upward revisions in earnings expectations [7]. - CoreWeave has made significant progress by delivering over 16,000 GPUs by the end of December, recovering from revenue impacts caused by delays in the previous quarter [7][8]. Group 3: Industry Validation - TSMC's record manufacturing yield and capacity expansion provide a solid foundation for new cloud service providers like CoreWeave and Nebius to fulfill their multi-billion dollar backlog orders [8]. - TSMC's gross margin of 62.3% indicates not only industry growth but also high profitability, which helps to alleviate concerns regarding an "AI bubble" [8].

Core Insights - The market has seen aggressive gains in AI-related stocks like Iren Limited, Nebius Group, and CoreWeave, with triple-digit increases in a short period due to enthusiasm for AI infrastructure and data centers [1] - A recent shift in market sentiment has led to stabilization and upward movement in share prices, with improving earnings estimates and renewed investor interest in niche AI infrastructure [2] Iren Limited (IREN) - Iren Limited operates in high-performance data centers and bitcoin mining, supported by renewable energy, positioning it well for rising demand in AI and data-intensive workloads [3] - The company's sales are projected to increase by approximately 120% this year and an additional 151% next year, indicating a strong growth outlook [4] - IREN's stock has recently broken out of a Stage One base, suggesting the beginning of a new uptrend, supported by accelerating fundamentals and improving technical structure [5] Nebius Group N.V. (NBIS) - Nebius Group focuses on AI infrastructure and cloud services, providing high-performance compute capacity for AI workloads, which positions it within the core layers of the AI infrastructure stack [8] - The stock has risen nearly 5% recently, reflecting improving investor sentiment, with sales expected to surge by 376% next year [9] - Nebius has also broken out from a Stage One base, indicating potential for a new uptrend, with both technical momentum and earnings expectations on the rise [10] CoreWeave Inc. (CRWV) - CoreWeave specializes in high-performance GPU compute for AI and advanced data workloads, establishing itself as a key player in AI-focused cloud capacity [12] - The stock has increased by over 6%, signaling a constructive rebound, with projected sales growth of 126% next year [13] - CoreWeave has broken out from a Stage One base, suggesting a transition to a new uptrend, supported by accelerating revenue growth and improving analyst sentiment [14] Market Outlook - All three companies are showing patterns of improving earnings outlooks, renewed investor interest, and technical breakouts, indicating a potential return of risk appetite in the AI infrastructure sector [16]

Core Insights - IREN Limited's vertically integrated AI cloud platform is designed to achieve higher margins compared to traditional colocation models by controlling power procurement, substation development, data center construction, and GPU deployment, which reduces costs and counterparty risks [1][10] Financial Performance - In Q1 of fiscal 2026, IREN reported $92 million in adjusted EBITDA on $240 million in revenues, indicating improving profitability as AI cloud services contribute more significantly to revenue [5] - The Zacks Consensus Estimate predicts over 100% revenue growth for IREN in both fiscal 2026 and 2027 [5] Competitive Landscape - TeraWulf (WULF) is a close competitor, focusing on HPC leasing with 520 MW of long-term, credit-backed capacity, but IREN maintains more balance-sheet flexibility and potential for growth as AI demand evolves [6] - CleanSpark (CLSK) is seen as a long-term challenger with a strong power and land base, but its AI strategy is still developing, allowing IREN to lead in the short term [7] Operational Advantages - Vertical integration enables faster commissioning and tighter operational controls, reducing idle capacity and accelerating revenue recognition [3] - IREN controls approximately 3 GW of secured grid-connected power, with only 16% utilized for its planned 140,000-GPU expansion, supporting lower costs and long-term cash flow visibility [4][10] Market Performance - IREN's shares have increased by 189.3% over the past six months, significantly outperforming the broader Zacks Finance sector's return of 7.2% and the Zacks Financial Miscellaneous Services industry's decline of 18.1% [8]

Core Viewpoint - IREN Limited is positioned as a leader in the Bitcoin infrastructure sector, focusing on low-cost, renewable-powered Bitcoin mining and expanding into AI computing, while Hut 8 Corp. offers a diversified platform that includes mining, hosting, and digital infrastructure services [2][3]. Company Overview - IREN and Hut 8 provide leveraged exposure to Bitcoin through physical infrastructure, relying on power access, efficient data centers, and scalable computing capacity rather than merely holding Bitcoin [3]. - IREN has secured 3 gigawatts of power capacity in renewable-rich regions, enhancing cost control and scalability for Bitcoin mining [4]. - Hut 8's infrastructure model faces execution and valuation risks, with earnings closely tied to Bitcoin price fluctuations and power costs [9]. Growth Opportunities - IREN is shifting its focus towards AI computing, with plans to expand its GPU fleet from 23,000 to 140,000 units by the end of 2026, targeting a $3.4 billion annual recurring revenue (ARR) opportunity [5]. - Hut 8's substantial 8.65 GW development pipeline has yet to be monetized, limiting its market acceptance until implementation milestones are achieved [10][11]. Financial Performance - IREN's fiscal 2026 revenue is estimated to increase by 119.6%, with earnings projected at 64 cents per share, reflecting a significant turnaround from previous earnings of just 4 cents per share [7]. - Hut 8's consensus estimate for a 2026 loss is pegged at 90 cents per share, indicating a deterioration in profitability concerns [12]. Stock Performance and Valuation - IREN has outperformed Hut 8, with a stock increase of 335.5% compared to Hut 8's 113.5% gain over the past year, attributed to IREN's decisive execution in AI infrastructure [15]. - IREN's price/sales ratio stands at 7.3X, lower than Hut 8's 13.43X, indicating a more favorable valuation supported by strong revenue visibility and disciplined execution [17]. Conclusion - IREN is viewed as the more attractive investment due to its vertically integrated platform, visible AI-driven revenue pipeline, and stronger balance sheet, while Hut 8 faces challenges with uneven execution and widening losses [17][18].

Core Viewpoint - IREN's stock has surged over 20% this week due to analyst upgrades and its transition from cryptocurrency mining to AI cloud services, supported by a significant contract with Microsoft worth $9.7 billion [1][3][9]. Analyst Upgrades and Market Sentiment - Bernstein has identified IREN as a top AI stock for 2026, while H.C. Wainwright upgraded the stock to a buy, citing its successful pivot to an AI cloud provider as a key factor for the stock's price increase [2][9]. - The stock has gained popularity among retail traders, particularly on platforms like X and Reddit, contributing to its recent performance [4]. Business Transition and Revenue - IREN is transitioning from being a Bitcoin miner to an AI cloud provider, with a notable contract from Microsoft that has significantly impacted its stock price, leading to an increase of nearly 400% over the past year [3][4]. - Despite the positive outlook, IREN's current revenue from AI cloud services is minimal, with only $7.3 million reported last quarter, highlighting a disparity between market valuation and actual earnings [4][6]. Valuation Concerns - IREN's market capitalization has reached $16 billion, which is considered a substantial premium given its current AI cloud revenue of less than $10 million per quarter [6][7]. - The long-term nature of the Microsoft contract and the associated build-out costs suggest that it may take years for IREN to achieve profitability in the AI cloud segment, raising concerns about the stock's current valuation [7].

Core Insights - Retail investors have shown significant interest in five stocks this week, driven by hype around AI and corporate news, including Nebius Group NV, IREN Ltd., D-Wave Quantum Inc., Microsoft Corp., and Oklo Inc. [1] Nebius Group NV (NBIS) - Nebius Group is experiencing bullish momentum due to its plans for early adoption of Nvidia's Vera Rubin platform, with Morgan Stanley initiating coverage and projecting a potential upside of 23.55% [5] - The stock has a 52-week range of $18.31 to $141.10, currently trading around $103 to $105, with a yearly increase of 176.36% and 94.87% over the last six months [6] IREN Ltd. (IREN) - IREN has gained analyst enthusiasm, particularly after a significant Microsoft contract, leading H.C. Wainwright to upgrade the stock to Buy with a price target of $80 [6] - Bernstein has reiterated IREN as a top AI pick for 2026, reflecting optimism in AI demand following CES [6] D-Wave Quantum Inc. (QBTS) - D-Wave Quantum has made a key technical breakthrough in scalable on-chip cryogenic control of qubits, enhancing its roadmap towards error-corrected systems [11] - The stock has a 52-week range of $5.12 to $76.87, trading around $51 to $53, with a yearly return of 353.19% and 199.77% over the last six months [11] Microsoft Corp. (MSFT) - Microsoft is facing a near-term decline amid news of an emergency auction for power contracts, but sentiment remains positive with predictions of reclaiming a $4 trillion valuation [15] - The stock has a 52-week range of $344.79 to $555.45, currently trading around $456 to $458, with a yearly increase of 7.56% but a decline of 9.68% over the last six months [16] Oklo Inc. (OKLO) - Oklo is advancing a nuclear power campus project in partnership with Meta Platforms, with pre-construction expected to start in 2026 and first power by 2030 [16] - The stock has a 52-week range of $4.45 to $46.75, trading around $28 to $30, with a yearly increase of 394.32% and 69.84% over the last six months [12]

Core Insights - Retail investors have shown significant interest in five stocks this week, driven by retail hype, AI developments, and corporate news [1] Group 1: Nebius Group NV (NASDAQ:NBIS) - Nebius Group is experiencing bullish momentum due to its early adoption plans for Nvidia's Vera Rubin platform, expected in the second half of 2026 [5] - Morgan Stanley initiated coverage on Nebius, highlighting aggressive scaling targets and strategic positioning in AI infrastructure, indicating a potential upside of 23.55% [5] - The stock has a 52-week range of $18.31 to $141.10, trading around $103 to $105, with a yearly increase of 176.36% and 94.87% over the last six months [6] Group 2: IREN Ltd. (NASDAQ:IREN) - IREN is benefiting from renewed analyst enthusiasm, particularly due to a significant Microsoft hyperscaler contract [6] - H.C. Wainwright upgraded IREN to Buy with a price target of $80, citing its exposure to AI demand through the Microsoft deal [6] - The stock has a 52-week range of $4.45 to $46.75, trading around $28 to $30, with a yearly increase of 394.32% and 69.84% over the last six months [12] Group 3: D-Wave Quantum Inc. (NYSE:QBTS) - D-Wave Quantum has made a key technical breakthrough in scalable on-chip cryogenic control of gate-model qubits, enhancing its dual-platform roadmap [11] - The stock has a 52-week range of $5.12 to $76.87, trading around $51 to $53, with a yearly return of 353.19% and 199.77% over the last six months [11] Group 4: Microsoft Corp. (NASDAQ:MSFT) - Positive sentiment surrounds Microsoft despite a near-term decline, with predictions of reclaiming a $4 trillion valuation amid rising power costs [15] - The stock has a 52-week range of $344.79 to $555.45, trading around $456 to $458, with a yearly increase of 7.56% but a decline of 9.68% over the last six months [16] Group 5: Oklo Inc. (NYSE:OKLO) - Oklo is advancing a nuclear power campus project in Ohio, supported by a multi-billion-dollar agreement with Meta Platforms [16] - The stock has a 52-week range of $17.42 to $193.84, trading around $91 to $93, with a yearly surge of 277.42% [18]

Core Viewpoint - IREN Limited is experiencing significant attention in the stock market, with a price target of $80 set by Mike Colonnese from H.C. Wainwright, indicating a potential upside of approximately 58.27% from its current trading price of $50.55 [1][5] Financial Performance - Despite a recent 17% decline in stock price, IREN is still rated as a 'Strong Buy' due to its robust fundamentals and focus on growth driven by artificial intelligence [2][5] - The company aims to achieve $3.4 billion in annualized AI cloud revenue by the end of 2026, supported by multi-year contracts with major players like Microsoft [2] - IREN's financial metrics include a forward price-to-sales ratio below 5 and a fiscal year 2028 price-to-earnings ratio of 16, suggesting the stock is attractively valued [3][5] Market Activity - IREN's current stock price is $50.78, reflecting a slight increase of 0.89% or $0.45, with trading volume at 25.64 million shares, indicating active investor interest [4] - The stock has shown significant volatility over the past year, with a high of $76.87 and a low of $5.13 [4]

Core Viewpoint - IREN's stock was upgraded to Buy from Sell by H.C. Wainwright, with a price target of $80, highlighting 2026 as a transformative year due to AI infrastructure spending [1] Group 1: AI Infrastructure and Contracts - IREN secured a $9.7 billion, five-year AI cloud agreement with Microsoft, one of the largest contracts for a bitcoin miner, expected to generate approximately $1.94 billion in annual recurring revenue by the end of 2026 [2] - The deal will be fully monetized once 200 megawatts of critical IT capacity are deployed at the Childress site [2] Group 2: Growth Potential and Financials - IREN has a development pipeline of over 2 gigawatts of incremental capacity expected to be energized by 2027, providing opportunities for AI cloud growth and colocation [3] - The stock has fallen about 35% from its November 2025 highs, creating an attractive entry point, while IREN raised $2.3 billion through convertible offerings, increasing its cash balance to $1.8 billion as of October 2025 for AI data center expansion [3]

Core Viewpoint - IREN Limited has garnered investor interest following an upgrade from H.C. Wainwright, reflecting confidence in its AI-driven growth and strategic partnerships [1][6] Financial Performance - IREN's stock price is currently at $50.59, showing a slight increase of 0.52% today, with fluctuations between $49.82 and $51.84 [4] - The company has experienced a significant price range over the past year, with a high of $76.87 and a low of $5.13, indicating market volatility [4] - IREN has a market capitalization of approximately $14.34 billion and a trading volume of 18.47 million shares, positioning it as a notable player in the tech industry [5] Growth Projections - IREN aims for $3.4 billion in annualized AI cloud revenue by the end of 2026, supported by multi-year contracts and a partnership with Microsoft [2][6] - Despite a recent 17% decline in stock price, IREN is still rated as a 'Strong Buy' due to its growth potential [2] Valuation Metrics - The company trades at a forward price-to-sales ratio below 5 and a fiscal year 2028 price-to-earnings ratio of 16, suggesting an attractive valuation compared to peers [3][6]