Oracle Corp (NYSE:ORCL) just spurred another tech selloff, despite the company denying a Financial Times report that Blue Owl Capital's plans to finance its $10 billion Michigan data center fell through. Prior to that, Oracle was in the spotlight following a fiscal second-quarter revenue miss, which dinged other AI and neocloud names amid persistent overvaluation fears. Amid all this buzz, ORCL landed on Schaeffer's Senior Quantitative Analyst Rocky White's weekly list of stocks that saw the highest options ...

Core View - CoreWeave, a cloud computing firm backed by Nvidia, is preparing for an IPO aiming to raise $4 billion at a valuation exceeding $35 billion [1] Company Background - Originally a cryptocurrency mining company, CoreWeave transitioned to AI in 2019 and has since aggressively acquired Nvidia GPUs, totaling 300,000 chips, which are essential for AI model training [2] - The company's revenue has surged from $25 million in 2022 to a projected $2 billion in 2024 [2] IPO Details - Major investment banks Morgan Stanley, Goldman Sachs, and JPMorgan are leading the IPO process [3] - CoreWeave has significant backing from investors including Nvidia, Coatue, Jane Street, and Fidelity, but it also carries a substantial debt of $11 billion, primarily secured by its Nvidia chips [3] Customer Dynamics - Microsoft, CoreWeave's largest customer, has committed over $10 billion through 2030, although its AI infrastructure strategy is reportedly changing, raising concerns about CoreWeave's ability to maintain its growth trajectory [4] Market Implications - The upcoming IPO is seen as a critical test for the "neocloud" market, with potential implications for the GPU-rental business depending on its success or failure [5]