Oracle Leads Data Center Stocks as Applied Digital and CoreWeave Sink

Core Insights - Oracle shares gained 5.20% last week, rising from $145.40 to $152.96, driven by AI cloud momentum and an analyst upgrade [1] - CoreWeave and Applied Digital faced significant declines, with CoreWeave down 8.26% and Applied Digital down 7.81% due to post-earnings fallout and legal issues [1] - The divergence in performance highlights the resilience of vertically integrated players like Oracle compared to pure-play infrastructure companies like CoreWeave and Applied Digital [2] Oracle Performance - Oracle's stock was upgraded to Outperform by Oppenheimer with a price target of $185, citing favorable risk/reward and immunity from AI disruption [1] - The company secured a win with Thermo Fisher adopting Oracle Cloud EPM, contributing to a positive outlook despite a report indicating a halt in the expansion of its Abilene data center project with OpenAI [1] - Concerns arose regarding Oracle's hyperscale ambitions following the scrapped plans for the Abilene campus, leading to a cautious end to the week [1] CoreWeave Analysis - CoreWeave reported Q4 2025 earnings with revenue of $1.57 billion, a 110% year-over-year increase, but a net loss of $452 million, significantly impacted by $388 million in interest expenses [1] - The company is heavily investing in GPU infrastructure, with Q4 capital expenditures reaching $4.06 billion and guidance for $30 to $35 billion in CapEx for 2026 [1] - Following earnings, CoreWeave faced multiple securities fraud class action lawsuits alleging misrepresentation of data center construction delays, which negatively affected market sentiment [1] Applied Digital Overview - Applied Digital's stock fell to $25.14, down 7.81% for the week, as it is closely tied to CoreWeave's performance due to its contracted capacity [1] - The company announced a $2.15 billion senior secured notes offering at 6.750% to fund its Polaris Forge 2 campus, which was seen as a constructive step despite the CoreWeave overhang [1] - Citizens Bank maintained a Market Outperform rating with a $40 price target, suggesting potential for investors despite tenant concentration risks [1]