Core Viewpoint - Veteran investor Louis Navellier warns against the recent "junk rally" in low-quality stocks and advises a shift back to quality stocks with strong earnings growth as the 2026 financial year begins [1][2] Group 1: Market Trends - Navellier highlights a fourth-quarter mean reversion where previously underperforming stocks led the market, which he deems unsustainable [2] - He anticipates a "big flip" in January, where quality companies with accelerating sales and earnings will regain market leadership [2] Group 2: Stock Picks - Navellier's top pick is Nvidia Corp. (NASDAQ: NVDA), expecting a 66.7% increase in sales and a 71% jump in earnings due to new chip sales to China [4] - He is also bullish on Palantir Technologies Inc. (NASDAQ: PLTR), forecasting a 64.1% earnings surge as a leading "AI implementer" for government contracts [4] - Seagate Technology Holdings PLC (NASDAQ: STX) and Celestica Inc. (NYSE: CLS) are highlighted as beneficiaries of the data center boom, with earnings expected to rise 37.6% and 58.1%, respectively [5] Group 3: Economic Outlook - Navellier expresses concern over the broader economy, predicting deflation as the primary story for 2026, citing falling rental costs, declining condo prices, and low energy prices [6] - He argues that the Federal Reserve needs to cut rates by at least 100 basis points to prevent a deeper economic slowdown [6] Group 4: Market Performance - In 2025, the S&P 500 increased by 16.65%, while the Nasdaq Composite and Dow Jones gained 20.54% and 13.38%, respectively [7] - The SPDR S&P 500 ETF Trust (NYSE: SPY) was up 0.24% at $684.82, and the Invesco QQQ Trust ETF (NASDAQ: QQQ) advanced 0.52% to $616.29 in premarket trading [7]

Group 1: Market Performance - The Shanghai Composite Index accelerated its rise by over 1%, returning to the 4000-point mark, with the computing power sector showing strong performance [1] - The cloud computing ETF Huatai-PineBridge (159273) saw a significant increase of over 3%, with a total trading volume exceeding 30 million yuan, representing a 33% increase compared to the previous period [1] Group 2: Stock Performance of Key Companies - Most of the weighted stocks in the cloud computing ETF Huatai-PineBridge closed in the green, with Kingsoft Office rising over 6%, and Alibaba-W, Zhongke Shuguang, and others increasing by over 2% [2] - The estimated weight and performance of key stocks include: - Zhongbiao Chuang (11.14% weight, +2.21% change) - Alibaba-W (9.52% weight, +2.55% change) - Kingsoft Office (3.97% weight, +6.49% change) [3] Group 3: Industry Trends and Projections - Guosen Securities reviewed the trends in AI model development, noting that the narrative around AI has evolved, with significant advancements expected in reasoning capabilities and application companies [4] - The capital expenditure (Capex) of major tech giants is projected to grow by over 50% year-on-year in 2025, with expectations of continued growth of over 30% in 2026 [5] - The demand for data center capacity is expected to increase significantly, with a projected shortfall in power supply due to the retirement of coal power and long construction cycles for supporting infrastructure [5] Group 4: Technological Developments - The evolution of model architecture continues, with a focus on addressing computational and memory consumption bottlenecks during training, as well as enhancing reasoning capabilities [5][7] - The emergence of AI agents is supported by improvements in model capabilities and efficiency, which are expected to drive significant growth in applications such as AI programming and content creation [8] Group 5: Investment Opportunities - The cloud computing ETF Huatai-PineBridge (159273) is positioned to capture the historical opportunities presented by AI-driven computing power, covering a wide range of sectors including hardware, cloud services, and data center operations [10]

Core Insights - Applied Digital (APLD) announced a strategic spinoff to enhance its position in the AI infrastructure market by merging its cloud computing division with EKSO Bionics Holdings to form ChronoScale Corporation, which will focus on AI workloads [1][3] Company Developments - The transaction structure allows Applied Digital to retain approximately 97% ownership of the new entity, enabling it to spin out its cloud business while maintaining significant control [2] - ChronoScale will serve as a standalone platform for GPU-intensive AI training and inference workloads, allowing both Applied Digital and ChronoScale to pursue independent growth strategies with increased capital flexibility [3] Financial Performance - Applied Digital's market capitalization is currently valued at $6.88 billion, with its stock price having more than tripled in the past year, although it is down nearly 40% from its 52-week high [4] - The company is transitioning from a cryptocurrency mining operation to a key player in the AI infrastructure sector, having secured billions in long-term contracts that provide revenue visibility [5] Infrastructure Development - The flagship data center, Polaris Forge 1, is a 400-megawatt facility leased to CoreWeave under a 15-year agreement valued at approximately $11 billion, with a subsequent $5 billion deal for Polaris Forge 2 with an unnamed investment-grade hyperscaler customer [6] - Applied Digital is constructing data centers in North Dakota, where electricity costs are 24% below the national average, which is advantageous given the high power consumption of AI queries compared to traditional internet searches [7]

Core Viewpoint - Investment bank KBW upgraded TeraWulf (WULF) to "outperform" from "market perform" and raised its price target to $24 from $9.50, indicating a positive outlook on the company's shift from bitcoin mining to AI and high-performance computing leasing [1] Group 1: Company Transition and Growth Potential - The market is underestimating the earnings upside from TeraWulf's transition from BTC mining to HPC leasing, with significant growth catalysts expected from a 646 MW HPC leasing pipeline through 2027 [2][3] - TeraWulf's existing leases are projected to drive a 505% EBITDA compound annual growth rate (CAGR) from 2025 to 2027, supporting multiple expansion from the current 13.8x EV/EBITDA valuation [3] Group 2: Revenue and Profit Contribution - HPC leasing is expected to generate two-thirds or more of TeraWulf's revenue in 2026, with mining becoming largely immaterial by 2027 [4] - The majority of contribution profit is anticipated to come from HPC leasing, reflecting a significant shift in the company's revenue model [4] Group 3: Market Dynamics and Valuation - The report suggests that execution risk is lower than investors assume, citing secured financing for major build-outs and a strong track record of delivery [4] - KBW expects valuation upside as lease revenues scale in 2026, leading to cap-rate compression and potential new HPC deal announcements over the next year [5]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Fermi Inc. and its officers or directors, following significant stock price decline after a key tenant terminated an agreement [1][3][4]. Group 1: Company Overview - Fermi Inc. completed its initial public offering (IPO) on October 1, 2025, offering 32.5 million shares at a price of $21.00 per share [3]. - The company is involved in the development of a data center campus known as Project Matador [3]. Group 2: Recent Developments - On December 12, 2025, Fermi announced that the first potential tenant for Project Matador had terminated its Advance in Aid of Construction Agreement, which involved Fermi agreeing to advance up to $150 million for construction costs [3]. - Following the announcement of the tenant's termination, Fermi's stock price dropped by $6.66 per share, representing a 43.67% decline, closing at $8.59 per share on December 15, 2025 [4]. Group 3: Legal Investigation - Pomerantz LLP is conducting an investigation on behalf of Fermi investors regarding possible securities fraud or other unlawful practices by the company and its executives [1].

Core Insights - Applied Digital is experiencing significant growth due to the increasing global demand for AI infrastructure, with shares rising over 236% in 2025 [1] - Analysts, including Roth MKM's Darren Aftahi, are optimistic about the stock's future, raising the target price from $43 to $56 while maintaining a buy rating [2] Company Developments - Applied Digital has fully contracted its 400 megawatts of data center capacity at the Polaris Forge 1 campus with CoreWeave under a long-term lease valued at approximately $11 billion over 15 years [4] - The company plans to expand capacity at the Polaris Forge 1 campus beyond one gigawatt from 2028 to 2030 as additional electricity becomes available [4] - The first 100-megawatt building at the Polaris Forge 1 campus is now operational, marking a shift from construction to recurring revenue generation, with expected annual net operating income (NOI) of $0.5 billion from the CoreWeave lease once fully ramped [6] Future Outlook - The Polaris Forge 2 campus, with a capacity of 300 megawatts, is expected to begin operations in late 2026, with a $5 billion, 15-year lease already signed for 200 megawatts, indicating low risk of unsold capacity [7] - The company aims to achieve a long-term target of a $1 billion NOI run rate within the next five years as both Polaris Forge 1 and Forge 2 ramp up operations [7] - With AI-ready data center capacity and the primary bottleneck in AI infrastructure being GPUs, Applied Digital is well-positioned to benefit from sustained demand from hyperscalers and strong long-term cash flow visibility [8]

Core Insights - Alphabet has recently made significant moves, including a $4 billion investment from Berkshire Hathaway and the acquisition of Intersect for $4.75 billion, which has led to a surge in its stock price to all-time highs [1][2]. Group 1: Acquisition Details - Alphabet announced a definitive agreement to acquire Intersect, a company specializing in data center and energy infrastructure solutions, for $4.75 billion [2]. - The acquisition aligns with Alphabet's strategy to enhance its capabilities in artificial intelligence (AI) and energy management, which are critical for the future of its operations [2][8]. Group 2: Importance of Intersect - Intersect develops utility-scale renewable energy solutions for data centers, utilizing various power generation sources like wind, solar, and battery, which allows for efficient energy management [5][6]. - The rising costs of energy are a significant concern for AI developers, and Intersect's expertise in energy management can help Alphabet mitigate these costs as AI workloads increase [6][7]. Group 3: Strategic Implications - By acquiring Intersect, Alphabet aims to gain control over its future energy costs, improving efficiency in accessing data center capacity compared to relying on external utility providers [8]. - This move is consistent with Alphabet's vertically integrated business model across its various sectors, including search, cloud, advertising, and consumer electronics [9].

Group 1 - SoftBank is in advanced talks to acquire DigitalBridge, indicating a potential strategic move in the investment landscape [1]

RADNOR, Pa., Dec. 24, 2025 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is currently investigating potential violations of the federal securities laws on behalf of investors of CoreWeave, Inc. (NASDAQ: CRWV) (“CoreWeave”). CoreWeave’s business model involves using high-interest debt to buy thousands of advanced AI chips from Nvidia, installing them in server racks inside data centers that it leases from third-party landlords, then renting access to the chips to AI co ...

Group 1: Aerospace Industry Insights - Howmet Aerospace (HWM) is approaching a new buy point after strong recent gains, making it a notable stock for IBD 50 Growth Stocks To Watch [5] - Howmet supplies aircraft parts, including engine turbine blades, for both new commercial jets and military aircraft like the F-35 [5] - Heico and Howmet are both nearing buy points, indicating a positive outlook for aerospace parts suppliers as Wall Street anticipates a good year ahead [6] Group 2: Market Trends and Stock Performance - The article discusses the potential for a Santa Claus Rally, suggesting that significant market movements may be on the horizon [3] - The performance of gold and silver miners is highlighted, with Pan American leading a list of newcomers to stock watchlists, alongside Wheaton and Newmont [8] - Nvidia is identified as a leading AI heavyweight, featuring prominently on various IBD watchlists, indicating strong interest in AI-related stocks [10]