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Core View on CoreWeave - CoreWeave's stock has increased by 160% since the last bullish coverage, driven by power-limited and data center supply shortages amid the race for AI leadership [1] - The company is strategically positioned to capitalize on the growing demand for AI infrastructure [1] Leadership & Management Analysis - CoreWeave demonstrates a proven track record in scaling businesses, with smart capital allocation and insider ownership [1] - The company has shown consistent revenue growth and provides credible guidance [1] Market Disruption & Competitive Positioning - CoreWeave possesses a strong technology moat and first-mover advantage in the AI sector [1] - The company benefits from network effects that drive exponential growth and has achieved market penetration in high-growth industries [1] Financial Health & Risk Management - CoreWeave exhibits sustainable revenue growth with efficient cash flow management [1] - The company maintains a strong balance sheet and a long-term survival runway, avoiding excessive dilution and financial weakness [1] Valuation & Asymmetric Risk/Reward - CoreWeave's valuation is assessed through revenue multiples compared to peers and DCF modeling [1] - The company has institutional backing and positive market sentiment, ensuring downside protection with significant upside potential [1] Portfolio Construction & Risk Control - CoreWeave's investment strategy includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative investments (5-10%) in moonshot disruptors [1]

Core Insights - Applied Digital (APLD) is shifting its focus towards hyperscale data center leasing, particularly for AI infrastructure, as its Cloud Services segment struggles to achieve profitability [1][4] - APLD's third-quarter fiscal 2025 revenues increased by 22% year-over-year to $52.9 million, but the Cloud business generated only $17.8 million, reflecting a sequential decline due to technical issues and a shift to on-demand capacity [1][9] - The Data Center Hosting segment is gaining traction, supported by significant financing agreements, including a $5 billion deal with Macquarie and a $375 million agreement with SMBC [2] Financial Performance - APLD's Cloud Services business incurred over $10 million in losses during the fiscal third quarter, facing competitive pressure from CoreWeave [3] - The company is exploring options to divest or spin out its Cloud Services business, which is seen as a hindrance to its leasing negotiations and potential REIT transition [3][4] - APLD's stock has increased by 20.7% year-to-date, contrasting with a 3.5% decline in the industry [8] Strategic Developments - APLD is developing its Ellendale campus with a planned 400MW critical IT load, with the first 100MW facility expected to be operational in the fourth quarter of 2025 [2] - A landmark $7 billion lease agreement with CoreWeave is expected to provide recurring revenues over 15 years, underscoring the economic potential of APLD's HPC infrastructure [2][9] - The company has a planned buildout of 1.4GW and is engaged in active lease discussions, although it faces execution risks related to high capital expenditures of $30–50 million per month [3] Valuation and Estimates - APLD trades at a forward price-to-sales ratio of 7.97X, which is above the industry average and its five-year median of 5.03X [10] - The Zacks Consensus Estimate for APLD's fiscal 2026 earnings suggests a year-over-year increase of 73.6% [11]

Company Developments - Soluna Holdings shares experienced a rise in early trading [1] - The company announced an expansion of its Texas site [1] - The expansion is in partnership with a "top-tier Bitcoin miner" [1]

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]

Vertical Integration Strategy - The company believes vertical integration is crucial for delivering optimal solutions to large clients and sophisticated consumers of infrastructure [2][3] - The acquisition of Core Scientific is viewed as a move down the stack, integrating physical data centers and power requirements [4] - Vertical integration provides more physical control over building and delivering infrastructure, which is valuable in a dynamic market [6] - The company tried to acquire Core Scientific for approximately 1 billion USD last year, indicating a long-standing interest in integration [7] - Vertical integration enables efficient and effective scaling to remain relevant in the cloud revolution [13][20] Margin and Profitability - The company anticipates margin accretion from in-sourcing infrastructure components [6] - Acquiring Core Scientific is expected to be margin accretive as it internalizes hosting contracts [9] - The company disagrees with assessments suggesting the acquisition will not be margin accretive [5][10] Market Demand and Growth - The market is experiencing a generational shift in the scale and type of infrastructure needed [2] - Demand for infrastructure to support AI is voracious, evidenced by a nearly 12 billion USD contract and a 30 billion USD contract [15] - The company is broadening its client base beyond Microsoft, including a second hyperscaler [16] - The company aims to position itself to deliver infrastructure faster and at a larger scale [16] Challenges and Bottlenecks - Integrating two companies is always challenging [14] - Extending capacity to deliver infrastructure is also enormously challenging [14] - Energy is identified as a bottleneck [14]

Core Viewpoint - Vertiv Holdings Co has received an upgrade from Melius Research to "buy" from "hold," indicating positive sentiment towards the company's prospects in the AI sector [1] Company Performance - Vertiv's stock is currently trading at $129.93, reflecting a 2.9% increase [1] - The stock has risen significantly from an annual low of $53.60 on April 7, showing a year-over-year increase of almost 40% and a projected increase of 13.5% for 2025 [1] Market Conditions - The company is expected to benefit from supplying power grids in the AI race, which is gaining momentum [1] - Options for Vertiv are currently considered affordable, with a Schaeffer's Volatility Index (SVI) of 51%, placing it in the 8th percentile of its annual range, indicating low volatility expectations [2] Performance Metrics - Vertiv has outperformed volatility expectations over the past year, as indicated by a Schaeffer's Volatility Scorecard (SVS) of 82 out of 100 [2]

Group 1 - BluSky AI Inc. has acquired its first operational site in Central Utah, securing 9.3 megawatts (MW) of power for its flagship data center project [1][2] - The company entered into a definitive Acquisition and Power Assignment Agreement with Digital Asset Management, LLC, allowing it to utilize 9.3 MW of grid-interconnected power at a competitive rate [2][3] - In exchange for power rights, BluSky AI issued 20 million shares of restricted common stock to DAM, ensuring long-term energy stability for the data center project [3] Group 2 - BluSky AI executed a Ground Lease with Wild Mustang Ventures LLC for 51.6 acres of land in Central Utah, with an initial two-year term and an annual base rent of $90,000 [4] - The company now controls 9.3 MW of power capacity, positioning it to rapidly deploy its modular AI compute infrastructure [5] - The CEO of BluSky AI emphasized that securing long-term, low-cost power and strategic land is a foundational moment for scaling AI infrastructure sustainably [6] Group 3 - BluSky AI Inc. is headquartered in Salt Lake City, Utah, and focuses on delivering modular, rapidly deployable data center infrastructure designed for artificial intelligence [7] - The company aims to provide high-performance infrastructure to support machine learning workloads for various partners, from startups to enterprises [7]

Group 1 - The core point of the article is that Aofei Data (300738.SZ) has received approval from the Shenzhen Stock Exchange for a targeted issuance of no more than 1.75 billion yuan to fund its new cloud computing and artificial intelligence industrial park project [1] - The project aims to build five new data center buildings with a total of 8,925 cabinets, and the expected internal rate of return is 11.49% with a payback period of 7.4 years after tax [2][4] - Aofei Data's main clients include well-known internet companies such as Baidu, Kuaishou, and Kingsoft Cloud, which provides a solid customer base for future business development [2] Group 2 - The data center industry is characterized by high investment and long returns, and recent approvals for data center REITs in China indicate a new financing solution for the industry [1][6] - Aofei Data's current financial situation shows a significant reliance on external financing, with short-term interest-bearing liabilities of 2.697 billion yuan and cash equivalents of only 554 million yuan, indicating high short-term repayment pressure [4] - The company is exploring new financing methods, including Pre-REITs funds, to address its capital needs, although it currently has no plans to issue REITs [1][6] Group 3 - The Hebei provincial government has set ambitious targets for data center development, aiming for 1.65 million standard cabinets by 2025 and a core industry added value of 330 billion yuan by 2027 [3] - Aofei Data is also involved in establishing an industrial investment fund to support its subsidiary Aorong Technology, which operates a large data center in Nansha, Guangzhou [9] - The establishment of Pre-REITs funds is seen as a potential pathway for Aofei Data to secure equity funding before transitioning to public REITs once assets mature [8][6]

Group 1 - Hyperscale Data, Inc. announced that its subsidiary Sentinum, Inc. received approximately 13.7 Bitcoin in June 2025 and approximately 103.7 Bitcoin year-to-date through June 30, 2025 from its mining pool [1][2] - Sentinum entered into a hosting services agreement in Montana, providing access to approximately 20 megawatts of energy capacity for its Bitcoin mining operations, with 6,800 Antminers delivered and operational [2][3] - The company reported approximately $11.2 million in year-to-date Bitcoin mining revenue, with expectations for significant revenue growth in the third and fourth quarters of 2025 [3] Group 2 - The activation of two additional Bitcoin mining sites has increased the total operational Antminers to approximately 18,200 [3] - Sentinum has reenergized approximately 10 MWs of power at its Montana facility, with plans to increase operational Antminers from 2,600 to approximately 3,200 by the end of July 2025 [2][3] - The company is focused on maximizing efficiency and delivering long-term value to stockholders [3] Group 3 - Hyperscale Data is planning to divest its subsidiary Ault Capital Group, Inc. by December 31, 2025, transitioning to solely operate data centers for high-performance computing services [6] - The company will continue to support various industries, including AI ecosystems, through its data center operations [5][6]