Group 1: Celestica (CLS) - Celestica exceeded Q2 earnings expectations, with sales of $2.89 billion, a 21% increase from $2.39 billion a year ago, surpassing estimates by 8% [3] - Q2 earnings soared 53% year-over-year to $1.39 per share, exceeding expectations of $1.24 by 12% [3] - The stock hit an all-time high of $208, spiking 16% in a single trading session, driven by high demand for communications and enterprise hardware products [2][4] - Celestica's stock has increased over 115% in 2025 and more than 135% in the last three months, outperforming broader market indexes [4] Group 2: Exelixis (EXEL) - Exelixis reported Q2 EPS of $0.75, beating expectations of $0.65 by 15%, despite a decline from $0.84 in the previous year [5] - Sales were $568.26 million, missing estimates of $578.91 million and down from $637.18 million in Q2 2024 [5][6] - The stock fell nearly 17% post-earnings, presenting a potential buy-the-dip opportunity, despite reaffirming full-year revenue guidance of $2.25-$2.35 billion [5][7] - Exelixis' stock is down 5% in 2025 but has increased over 80% in the last two years, currently trading under $40 with a forward earnings multiple of 16.6 [9]

Market Concerns & Risks - CoreWeave stock is experiencing downgrades due to analyst concerns about near-term overhang following the announcement of acquiring Core Scientific [1] - City places CoreWeave on a 90-day downside catalyst watch due to lockup expirations, with approximately 85% of class A shares becoming available next month [1][2] - The all-stock deal for Core Scientific reveals a 30% spread, indicating high borrow costs rather than uncertainty about the deal closing [3][4] - Options market suggests a forward price of $120 for CoreWeave in October, raising concerns given the stock's 4x increase since its IPO and the all-stock deal at a near-term peak [5] - Potential slowdown in demand and rapid upgrade cycles from Nvidia (Hopper, Blackwell, Reuben) could pose problems for companies heavily invested in AI chips [6] CoreWeave & Core Scientific Acquisition - CoreWeave's acquisition of Core Scientific involves shutting down and repurposing some of Core Scientific's infrastructure, including Bitcoin mining operations [11][12] - The acquisition provides CoreWeave with approximately 2 gigawatts of incremental power, considered a good deal if synergies are realized [11] - The acquisition is viewed as a play to increase CoreWeave's share in the AI hyperscaler market, but carries execution risk [12] AI Market & CoreWeave's Position - Industry fundamentals are positive in the near term, with revenue forecasts increasing due to large contracts, such as a $30 billion annual deal from Oracle [7] - CoreWeave is heavily leveraged to the AI data center build, making it more susceptible to near-term disruptions like chipset delays or slowdowns in demand [8][9] - Long-term concerns exist regarding depreciation accounting and rising competition, with CoreWeave viewed more as a data center provider than a true software company [9]

Core Insights - Nebius Group N.V. (NBIS) shares have increased by 81.4% year to date, significantly outperforming the Zacks Computer & Technology sector and the Zacks Internet Software Services industry's growth of 7.9% and 26.8%, respectively [1] - The S&P 500 Composite has risen by 6.2% during the same period [1] Price Performance - The stock's performance has surpassed major players like Microsoft (MSFT) and Amazon (AMZN), which have gained 18.3% and 1.8%, respectively [4] - CoreWeave (CRWV) has experienced a remarkable increase of 313% since its trading debut on March 28 [4] Challenges for Nebius - Nebius, based in Amsterdam, is a neo cloud company that has recovered from a significant sell-off in April, but still faces challenges due to a volatile global macroeconomic environment [5] - The company competes with major players in the AI cloud infrastructure space, including Amazon, Microsoft, and Alphabet, as well as smaller competitors like CoreWeave [5] Market Dynamics - Amazon Web Services and Microsoft's Azure dominate over half of the cloud infrastructure services market [6] - Microsoft's partnership with OpenAI provides Azure with priority access to leading AI models, while Amazon's AI segment is experiencing triple-digit percentage growth year over year [6] Financial Performance - Despite strong top-line growth, NBIS remains unprofitable, with management indicating that adjusted EBITDA will be negative for the full year 2025, although it expects to turn positive in the second half of 2025 [7][9] - The company has raised its 2025 capital expenditure forecast to approximately $2 billion, up from $1.5 billion, which raises concerns about sustaining high capital intensity amid fluctuating revenues [8] Strategic Focus - Nebius is concentrating on technical enhancements to improve reliability and reduce downtime, aiming to boost customer retention and increase its share of the AI cloud compute market [9] - The company has reaffirmed its annual recurring revenue (ARR) guidance of $750 million to $1 billion and overall revenue guidance of $500 million to $700 million for 2025 [9] Valuation Concerns - Nebius appears overvalued, indicated by a Value Score of F, with shares trading at a Price/Book ratio of 3.75X, lower than the Internet Software Services industry's ratio of 4.2X [12][13] Investment Outlook - Given the intense competition from hyperscalers and ongoing unprofitability, the near-term outlook for NBIS is tempered, leading to suggestions that investors may consider locking in gains and offloading the stock [14]

Core Viewpoint - CoreWeave, Inc. is gaining attention as a significant player in the AI cloud infrastructure market, particularly due to its relationship with NVIDIA, which owns approximately 6% of CoreWeave's shares. The company's stock has seen a 34% increase since its IPO, despite initial challenges [1][2]. Company Overview - CoreWeave specializes in providing AI cloud infrastructure by renting out approximately 250,000 NVIDIA GPUs to firms for AI model training, differentiating itself from other cloud providers like Microsoft that offer a broader range of computing services [2][3]. - The company emphasizes its ability to quickly access the latest GPUs, which is crucial for its customers to develop advanced AI models efficiently and cost-effectively [4][5]. Financial Performance - In 2024, CoreWeave reported a staggering revenue growth of 737%, with an adjusted operating margin of 19%, indicating strong demand for its services [6]. - The company has around $15 billion in remaining performance obligations, suggesting significant potential future revenue, which is about eight times its 2024 revenue [7]. - Despite the revenue growth, CoreWeave is facing substantial financial challenges, including a net income loss of approximately -$863 million and a debt load nearing $8 billion, with interest payments of $360 million in 2024 [8]. Investment Considerations - The company's founders sold nearly $500 million worth of shares before the IPO, raising concerns about their confidence in the company's future [9]. - Analysts currently hold a "Hold" rating on CoreWeave, suggesting caution for potential investors, especially given the company's precarious financial position despite its growth potential [10][13].