Core Insights - Nscale has agreed to build a data center for Microsoft in Texas, marking the fourth similar agreement between the two companies in the past two months [1] - The new facility will have a power capacity of up to 240 megawatts and is expected to be operational by Q3 2026, deploying approximately 104,000 new NVIDIA GB300 chips [1] - Nscale, established in 2024 from a cryptocurrency mining company, has become one of the most active AI chip leasing companies amid a surge in demand for computing resources [1] - Microsoft has entered into a five-year, $6.2 billion agreement with Nscale to build a data center in Norway, with plans to deploy about half the number of NVIDIA GB300 chips compared to the Texas site [1] - Nscale's CEO, Josh Payne, indicated that the startup is seeking to go public as early as next year [4] Industry Context - The AI industry has yet to report profits, and many infrastructure developers, including Nscale, lack experience in building data centers [1] - Microsoft has engaged with several "new cloud operators" to supplement its own server computing capacity [3] - Compared to other recent projects, the planned Texas facility is relatively small, as OpenAI plans to invest approximately $400 billion in five sites with a total capacity of around 7 gigawatts [5]

Core Viewpoint - The significant fluctuation in Microsoft's stock price is primarily driven by variations in its P/E multiple and reflects broader business dynamics and investor sentiment [1][2]. Factors Behind Stock Price Change - The stock price movements of Microsoft are influenced by fundamental aspects such as valuation, revenue, and profit margins [2]. - Microsoft's diverse offerings include software, services, devices, and solutions, catering to both business and personal computing needs [2]. Reasons for Microsoft's Stock Movement - Exceptional performance in cloud computing and AI, with Q3 2025 financial results showing substantial revenue and net income growth driven by Azure and other cloud services [6]. - Continued success in fiscal Q4 2025, marked by significant growth in Azure revenue and the Intelligent Cloud segment due to increased AI investments [6]. - Major capital expenditures aimed at expanding AI and cloud infrastructures to meet rising demand, supporting long-term growth despite initial concerns over high AI costs [6]. - Positive market response to Microsoft's financial robustness and strategic positioning in AI, leading to stock price increases after an initial drop due to regulatory challenges and tariff issues [6]. - Consistent shareholder returns through dividends, including a $0.91 per share declaration in September 2025, and share buybacks, reinforcing financial stability and investor confidence [6]. Current Assessment of MSFT Stock - The current assessment indicates that Microsoft stock is viewed as relatively overpriced, prompting further investigation into the factors influencing this viewpoint [7].

Core Insights - The global demand for AI infrastructure is expanding from the US to Europe, highlighted by a significant partnership between UK startup Nscale and Microsoft, potentially worth up to $14 billion [1][3] - Nscale, supported by Nvidia, is set to deploy approximately 104,000 Nvidia GB300 chips in Texas and an additional 12,600 GPUs in Portugal, building on a previous $6.2 billion contract [1][3] - Nvidia plays a crucial role as both a chip supplier and investor in Nscale, reflecting its strategy to accelerate the AI ecosystem by investing in its clients [2][5] Nscale's Growth and Challenges - Nscale has rapidly raised $1.5 billion in funding, achieving a valuation of around $3 billion, despite being only a year old [4] - The company faces significant challenges in scaling its operations, particularly in deploying over 100,000 GPUs in Texas and 12,600 in Portugal, with the latter expected to be operational by early 2026 [3][4] - Nscale's CEO emphasizes that the primary risk is not demand but rather potential power shortages, with nearly all capacity sold out for the next 12 months [4] Nvidia's Investment Strategy - Nvidia's backing has significantly boosted Nscale's market credibility, leading to increased investor confidence [5] - Nvidia's CEO announced a £500 million investment in Nscale to expedite the deployment of up to 300,000 GPUs, projecting potential revenues of up to £50 billion over the next six years [5] - This investment strategy is not isolated, as Nvidia has also invested in competitors like CoreWeave and Nebius, aiming to enhance the global AI data center landscape [5] European Market Dynamics - Europe is emerging as a critical battleground for AI infrastructure, with Nscale's choice of Portugal for its AI facility driven by the country's renewable energy leadership and competitive energy prices [6] - Portugal aims for 71% of its energy consumption to come from renewable sources by 2024, increasing to 81% by Q1 2025, which aligns with Nscale's sustainability goals [6] - Nscale's expansion in Europe includes projects in Norway and the UK, indicating its growing influence in the global AI infrastructure sector [6]

PeopleImages/iStock via Getty Images If You Build It, Will They Come? "Oracle’s stock jumped by 25% after being promised $60 billion a year from OpenAI, an amount of money OpenAI doesn’t earn yet, to provide cloud computing facilities that Oracle hasn’t built yet, and which will require 4.5 GW of power (the equivalent of 2.25 Hoover Dams or four nuclear plants), as well as increased borrowing by Oracle whose debt to equity ratio is already 500% compared to 50% for Amazon, 30% for Microsoft and even less ...

Group 1: AI Infrastructure Development - Nscale, a UK data center start-up, has secured a $14 billion deal with Microsoft to build hyperscale AI infrastructure, involving approximately 200,000 Nvidia GB300 GPUs [3][7] - The deal is expected to enhance Nscale's prospects for an initial public offering (IPO) and position it as a significant player in the AI cloud market [3][7] - Deliveries will occur across sites in Texas, Portugal, and Norway, with a major deployment of around 104,000 Nvidia GPUs planned for a 240MW campus in Texas starting in Q3 2026 [3][7] Group 2: Economic Challenges in Italy - Italy's general government debt rose to €3.082 trillion in August, up from €3.056 trillion, indicating ongoing fiscal challenges for the Eurozone's third-largest economy [4][7] - The country has the second-highest debt-to-GDP ratio in the Eurozone, following Greece, and the Italian Treasury anticipates that public debt will only begin to decline as a proportion of economic output from 2027 [4][7] Group 3: Political Developments in Japan - Japanese opposition parties are engaged in coalition discussions following the collapse of the ruling coalition, with potential collaboration between the Democratic Party for the People (DPFP) and the Liberal Democratic Party (LDP) [5][7] - DPFP Chief Yuichiro Tamaki expressed a willingness to work with the LDP if trust can be established, while other opposition leaders are considering a three-party agreement to potentially take power [5][7] Group 4: Trade Tensions Between China and India - China's Commerce Ministry has filed a complaint with the World Trade Organization (WTO) against India's subsidies for electric vehicles and batteries, claiming these measures harm China's economic interests [6][8][7] - This action signifies an escalation in trade disputes between China and India, particularly in the rapidly growing electric vehicle market [8][7]

Industry Focus - Data center developers are focusing on AI [1] Project Development - Nscale will build a data center site for Microsoft in Texas [1] - The site will have a power capacity of up to 240 megawatts [1]

Core Insights - Nscale will deploy approximately 200,000 Nvidia AI chips under an expanded agreement with Microsoft across its data centers in Europe and the U.S. [1] - The agreement could potentially generate up to $14 billion in revenue for Nscale, based on a comparable contract [1]. - Nscale's joint venture with Aker will supply Microsoft with around 52,000 Nvidia GPUs from its hyperscale AI campus in Narvik, Norway [2]. - AI-related infrastructure spending is projected to exceed $2.8 trillion through 2029, driven by investments from hyperscalers like Microsoft, Meta, and Alphabet [2]. - Nscale plans to begin supplying Nvidia GPUs to Microsoft via its data centers in Texas and Portugal starting next year [3]. - The company raised $1.1 billion from investors, including Aker and Nokia, to accelerate its data center expansion [3].

Core Points - Microsoft officially ended support for Windows 10 on October 14, 2025, ceasing all feature updates and security patches unless users enroll in the Extended Security Update (ESU) program or upgrade to Windows 11 [1][4]. Summary by Sections Windows 10 Support Termination - Microsoft has concluded its support for Windows 10, which had a lifecycle of only 10 years, shorter than Windows XP and Windows 7 [1]. - Users can still receive security updates by registering for the ESU program, which offers a low-cost option for continued support [4][6]. Extended Security Update (ESU) Program - The ESU program allows users to obtain security updates for Windows 10 for an additional year at a cost of $30 [6]. - Registration for the ESU requires that the system is running Windows 10 version 22H2 and meets specific conditions, including having the latest updates installed and using a Microsoft account with admin privileges [5][6]. - A single ESU license can cover up to 10 devices, but the program's future beyond one year remains uncertain, with an expected end date of October 13, 2026 [8]. Alternative Solutions for Windows 10 Users - **"Workaround" Security Updates**: Users can manually install security updates from Windows 10 Enterprise LTSC, but this requires regular manual downloads and installations [9][11]. - **Switching to Windows 10 Enterprise LTSC**: This version offers a longer support period until January 12, 2027, and is designed for stability, though it requires a Microsoft account and is part of a volume licensing agreement [13][15]. - **Upgrading to Windows 11**: Users can utilize tools like Flyoobe to bypass hardware requirements for Windows 11 installation, allowing older devices to upgrade smoothly [21][23]. - **Using Third-Party Tools**: Options exist to modify Windows 11 installation images to remove hardware checks, enabling installation on unsupported devices [25][26]. - **Installing Windows 11 IoT Enterprise**: This version is designed for lower-spec devices and does not enforce hardware checks, providing a viable upgrade path for older systems [27][29]. - **Third-Party Slimmed-Down Versions**: Users can opt for third-party versions like Tiny11, which remove unnecessary components while still receiving security updates, though this may affect system stability [33][36].

Core Viewpoint - The majority of the "Big Tech" stocks in the U.S. market, referred to as the "Seven Sisters," experienced pre-market gains, indicating positive investor sentiment towards these companies [1] Group 1: Stock Performance - Tesla and Nvidia both saw an increase of 1% in pre-market trading [1] - Amazon's stock rose by 0.6% [1] - Apple and Alphabet (Google A) both experienced a slight increase of 0.1% [1] - Microsoft’s stock remained unchanged [1]

Group 1 - The central government is likely to increase "national subsidies" and actively implement consumer loan interest subsidies to expand consumption demand while ensuring and improving people's livelihoods [1] - The issuance pace of special bonds has significantly accelerated, and real estate policies are expected to continue to stimulate demand [1] - The current abundant liquidity remains the main foundation for the market, with a good holding experience and profit effect continuously attracting incremental funds into the market [1] Group 2 - The nomination of Milan to the Federal Reserve Board has passed a procedural vote in the Senate, indicating a likely confirmation before the FOMC interest rate decision meeting [3] - The expectation of a rate cut by the Federal Reserve has increased, which may lead to improved global liquidity and a potential peak for growth style in the A-share market [3] - Focus on sectors such as "AI+" downstream applications in media and computing, and the lagging real estate sector under the "water flows to lower places" principle [3] Group 3 - The silver market's fundamentals are relatively ideal, with a significant recovery in the photovoltaic industry and increased investment demand for precious metals due to rising gold prices [5] - Nvidia and OpenAI have signed a letter of intent for strategic cooperation, with Nvidia investing $100 billion to help OpenAI build AI data centers [5] - The AI computing infrastructure is expected to accelerate construction, benefiting leading companies with strong commercial ties [5] Group 4 - The overall trend of the Shanghai Composite Index is characterized by range-bound fluctuations, influenced by US-China trade issues and third-quarter earnings reports [11] - Goldman Sachs maintains an overweight rating on A-shares and H-shares, suggesting buying on dips and focusing on leading private enterprises and themes like artificial intelligence [11] - Despite a recent pullback, institutional funds remain optimistic about future highs, although technology stocks face uncertainties due to sanctions [11]