We present our note on Nebius Group N.V. ( NBIS ), a leading technology company providing AI infrastructure, with a Buy rating. We are optimistic about the growth of the neocloud market, driven by strong AI compute demand, and believeL/S Equity, Event-Driven, and Activism. Independent and differentiated fundamental analysis.I am a former hedge fund analyst with a passion for research and analysis in my free time. I am to identify attractive investment opportunities and provide added value to my readersAnaly ...

Core Insights - SuperX and Hua Sheng Tian Cheng have established a joint venture, SuperX Global Service Pte. Ltd., in Singapore to provide end-to-end professional services for SuperX's global AI factory project [1][2] - The joint venture aims to address the increasing global demand for computing power, which traditional data centers struggle to meet due to the high-density computing, fast interconnectivity, and efficient cooling requirements of AI workloads [1] - SuperX's modular AI factory solution simplifies the construction of AI data centers (AIDC) into a standardized process, significantly reducing construction time and deployment difficulty [1] Company Collaboration - Hua Sheng Tian Cheng has extensive experience in providing digital services to over 16,000 clients, managing large-scale complex projects, and operating a global delivery network [2] - The joint venture will offer four core services: global contact center, implementation and installation services, after-sales maintenance services, and operational management services [2] - The establishment of the joint venture is expected to integrate Hua Sheng Tian Cheng's global service network with SuperX's product technology, shortening sales cycles and accelerating the deployment of complex solutions across various industries [2] Value Chain Enhancement - Previously, SuperX's core value was primarily in the sales of advanced hardware products and solutions; the joint venture fills a critical gap in SuperX's value chain by providing full lifecycle services from deployment to long-term maintenance and optimization [2] - This development is anticipated to significantly enhance customer loyalty, transforming one-time equipment transactions into long-term service and value co-creation partnerships [2] - SuperX is expected to gain trust from large enterprise clients more quickly, facilitating the global implementation of its modular AI factory solutions [2]

Core Insights - Exabits Labs and Freyr Technology AI have formed a strategic partnership to create a real-world asset (RWA) tokenization solution for Freyr's data center and GPU computing assets, aiming to enhance financing options and investor engagement [1][2][3] Group 1: Partnership Details - The collaboration will enable Freyr to convert its AI infrastructure into digital securities, unlocking new financing avenues [1][3] - Freyr has signed a three-year contract worth $1.4 billion to develop AI-powered data centers in Southeast Asia, with plans to explore tokenization models for its assets [2][3] Group 2: Strategic Goals - The partnership aims to optimize data center performance through AI-driven management while providing access to new capital [3] - By leveraging real-world asset tokenization, the collaboration seeks to unlock value from Freyr's data centers and attract global investors [3] Group 3: Industry Context - The partnership represents a convergence of advanced AI infrastructure and next-generation fintech, applying asset tokenization to AI compute infrastructure, which is a novel approach [3] - Transforming physical GPU capacity into blockchain-based assets could create a significant new market for investing in digital infrastructure [3] Group 4: Company Profiles - Exabits Labs specializes in AI infrastructure and fintech, combining GPU cloud services with innovative financing models for compute assets [4] - Freyr Technology AI provides full-stack infrastructure solutions for AI and high-performance computing across the Asia-Pacific, recognized as a NVIDIA Preferred Partner [5]

Group 1 - Bit Digital, Inc. (NASDAQ:BTBT) is identified as a promising stock under $5 with significant upside potential, supported by a Buy rating and a $7 price target from H.C. Wainwright analyst Kevin Dede [1] - The company's strategic shift from Bitcoin to Ethereum and its focus on high-performance computing (HPC) infrastructure positions it advantageously in the evolving crypto and technology landscape [2] - Bit Digital holds a considerable stake in WhiteFiber, which is involved in HPC-AI cloud and colocation services, and is currently trading at a discount compared to its peers, indicating potential for future appreciation [3] Group 2 - Bit Digital is headquartered in New York City and operates as a holding company providing a platform for digital assets and AI infrastructure, with Bitcoin mining operations across the US, Canada, and Iceland [4]

Core Scientific and CoreWeave Acquisition Update - Core Scientific's stock rose over 6% to $22.08 following the rejection of CoreWeave's acquisition offer at a special shareholder meeting [1] - CoreWeave's stock fell over 5% to $132.67 after the acquisition deal was terminated [1] - The acquisition, initially announced in July, was valued at approximately $9 billion and aimed to expand CoreWeave's AI computing infrastructure [1] Shareholder Reactions and Strategic Implications - Major shareholders, including Two Seas Capital, opposed the acquisition, and influential voting advisory firms Glass Lewis and ISS recommended shareholders reject the deal [2] - Glass Lewis noted that while the acquisition had strategic merit, Core Scientific might have greater upside potential as an independent company if it capitalizes on growing computing demand [2] - Market sentiment had anticipated the deal's failure, as evidenced by the negative deal spread observed in the months following the announcement [2] CoreWeave's Response and Future Strategy - CoreWeave's CEO, Michael Intrator, stated that the company would not increase its acquisition bid and respects the decision of Core Scientific's shareholders [2] - Intrator emphasized that CoreWeave's strategic direction remains unchanged, focusing on creating long-term value through strategic acquisitions and prudent investments [2]

Core Viewpoint - Astera Labs (NASDAQ: ALAB) is positioned as a significant player in the AI sector, with its stock price increasing from approximately $70 to around $160, indicating strong market interest and growth potential [1] Group 1: Company Overview - Astera Labs is identified as a pure play on the AI gold rush, suggesting a focused investment strategy in the AI industry [1] - The company has shown aggressive growth prospects, which aligns with the investment philosophy of GARP-themed investors [1] Group 2: Investment Philosophy - The investment approach emphasizes long-term discipline and consistent alpha generation, with a consideration of risk [1] - The focus is on companies that are on a trajectory to become highly profitable within 1-2 years [1] Group 3: Analyst Background - The analysis is conducted by an associate of Kennedy Njagi, who is noted for empowering the underprivileged and improving financial literacy [1]

Core Insights - Applied Digital Corp is a key player in the technology sector, focusing on AI-optimized infrastructure and has achieved the Ready for Service milestone at its Polaris Forge 1 AI Factory Campus in North Dakota, indicating significant progress in meeting the demand for AI infrastructure [1][6] Company Developments - The CFO of Applied Digital sold 37,503 shares at $36.47 per share, retaining 121,409 shares, while the company's stock has nearly quadrupled in value over the year despite a recent decline of over 20% [2][6] - A significant $5 billion infrastructure lease agreement with a U.S.-based hyperscaler will enhance the company's total lease capacity to 600 megawatts across its North Dakota campuses, positioning Applied Digital for sustained expansion in the AI infrastructure market [4][6] Market Context - The broader stock market has performed well in 2025, with the S&P 500 index rising nearly 15% and the Nasdaq-100 Technology Sector index gaining 42%, driven by advancements in AI, which have positively impacted technology stocks including Applied Digital [3] - The demand for AI chips is improving and is expected to continue into 2026, highlighting Applied Digital's potential for growth as it scales its AI infrastructure and secures major lease agreements [5]

Core Insights - The rise of artificial intelligence (AI) is creating significant energy demands that traditional software solutions cannot address, leading to a shift in data center location decisions based on power grid capacity rather than other factors [2][18] - This energy constraint is benefiting companies in less glamorous sectors, particularly those involved in thermal management, electrical distribution, and grid infrastructure [3][17] Thermal Management - Vertiv specializes in thermal management systems and power distribution units, addressing the high energy requirements of AI racks, which can run between 20 to 100 kilowatts, compared to traditional server racks that operate at 5 to 15 kilowatts [6][8] - The company’s solutions are essential for AI deployments, as they require both air-cooled and liquid-cooled architectures to manage heat effectively [6] Electrical Distribution - Eaton manufactures electrical power distribution equipment and backup systems tailored for data centers, including uninterruptible power supplies and power distribution units [9][12] - The company has introduced systems designed to manage sudden power surges from GPU clusters, addressing grid-to-chip instability that is critical for AI workloads [11][12] Grid Infrastructure - Quanta Services provides specialty contracting for electric power infrastructure, focusing on the design and construction of transmission lines and substations necessary for AI data centers [13][16] - The company’s projects are crucial for utility companies to modernize their infrastructure before AI facilities can begin operations, capturing spending that occurs well in advance of actual data center construction [16] Market Dynamics - The three companies—Vertiv, Eaton, and Quanta—are positioned to benefit from the ongoing demand for power delivery and thermal management solutions as AI workloads continue to scale [17][18] - Each company has unique advantages and market dynamics, with revenue visibility extending beyond 2026 due to long-term project timelines and recurring service revenue models [16][17]

Core Viewpoint - SuperX has established a joint venture, SuperX Cooltech Pte. Ltd., with a subsidiary of Cheng Tian Wei Ye to address the cooling challenges posed by the exponential growth of AI computing power [1][2] Group 1: Joint Venture Formation - The joint venture aims to integrate both companies' strengths in AI system integration and thermal management components to provide advanced liquid cooling products and infrastructure solutions globally [1][2] - SuperX will become the largest shareholder of the joint venture upon completion of the investment [1] Group 2: Market Context and Technology - Traditional air cooling methods are insufficient for managing the high thermal flux required by AI training and inference clusters, making power consumption and cooling issues critical bottlenecks for AI data center deployment [1] - Efficient cabinet-level liquid cooling technologies, including cooling distribution units (CDUs) and high-performance liquid cooling plates, are rapidly becoming mainstream in the industry [1] Group 3: Competitive Advantages - SuperX's core advantages include a global perspective, AI server system integration capabilities, and an end-to-end customer service network, with a product line that includes high-performance AI servers and AI cloud services [2] - Cheng Tian Wei Ye has established a complete layout in key products such as nano-injection liquid cooling plates and CDU systems, enhancing the joint venture's competitive edge in the AI infrastructure solutions sector [2] Group 4: Production and Efficiency - The joint venture can leverage Cheng Tian Wei Ye's mature engineering and intelligent manufacturing systems to quickly convert advanced R&D results into reliable mass production, meeting global customers' stringent requirements for high-quality and stable supply chains [3] - Standardized modular designs will shorten project delivery cycles and optimize system-level thermal management, significantly improving customers' long-term return on investment [3]

Core Viewpoint - CoreWeave is facing scrutiny due to significant insider sales exceeding $1 billion, raising concerns about confidence in the company as a leading player in AI infrastructure for 2025 [1][2] Insider Trading Activity - Insiders sold over 35 million shares in the last three months, totaling approximately $1.4 billion, with a stark contrast of 66 sales against only 3 purchases in the past year, which is often interpreted as a bearish signal by investors [2][6] - The selling activity was aggressive, with multiple shareholders offloading large blocks of shares priced between $136 and $148 from October 9 to October 17 [3][4] - Notable sales included Chief Strategy Officer Brian M. Venturo selling over 150,000 shares in several transactions, and CEO Michael Intrator selling 82,455 shares for over $11 million in a single trade [4][7] Stock Performance - Following the insider sales, CoreWeave's stock closed at $121.53 on October 22, down nearly 3% for the day and significantly below its 52-week high of $187, indicating potential volatility as the market reacts to the insider activity [8] Market Sentiment - While insider selling does not always indicate trouble, the concentrated nature of these sales, coupled with minimal insider buying, raises concerns about the company's near-term valuation [9] - Despite the short-term concerns, the long-term demand for AI infrastructure remains strong, suggesting that CoreWeave's fundamental story is still intact [10]