Core Viewpoint - Hagens Berman is alerting investors about a pending class action against CoreWeave, Inc. for allegedly misleading the market regarding its AI infrastructure scalability and revenue guidance [1][4] Allegations of Misrepresentation - The lawsuit claims that CoreWeave overstated its capacity to meet customer demand and downplayed operational risks associated with reliance on a single third-party data center supplier [2][7] - Significant delays at the Denton, Texas data center have been revealed, which were reportedly months behind schedule, leading to a market capitalization drop of approximately $14 billion [2][7] Market Reaction - Following the company's lowered guidance, there was a notable stock drop of 16% on November 11, contributing to a significant loss in shareholder value [7] Investigation Details - Reed Kathrein, the partner leading the investigation, emphasized the gap between the company's growth assurances and the reality of construction delays at its primary data center sites [3][4] - The complaint alleges that CoreWeave's ability to recognize revenue from its multibillion-dollar backlog was contingent on infrastructure that was not on track for timely completion [7] Next Steps for Investors - Investors who purchased CoreWeave shares during the Class Period (March 28, 2025 – December 15, 2025) and suffered losses are encouraged to submit their claims [5][6]

Turnaround Stories - Nike has shown improvement under CEO Elliott Hill, stabilizing its U.S. market, with China as the next focus [1] - Procter & Gamble's weak quarterly earnings were expected, with management indicating that the worst is behind them, setting the stage for better performance in 2026 under new CEO Shailesh Jejurikar [1] - Starbucks is seeing steadier performance in China and improving U.S. sales trends, with an update expected during Investor Day next week [1] - Texas Roadhouse has faced cattle inflation but is expected to benefit from declining beef prices, maintaining a position in the portfolio [1] Key Holdings Updates - Apple announced a partnership with Alphabet, allowing the use of Google's AI technology, which is seen as a significant win [1] - Amazon's stock is urged to be retained despite emotional trading, with a reaccelerating cloud business poised for a breakout [1] - Broadcom delivered a strong quarter but has underperformed; buying the dip is being considered [1] - Boeing is recommended for long-term ownership due to strong free cash flow and increased orders [1] - BlackRock's acquisitions are expected to expand its client base and exposure to fast-growing markets [1] Sector Insights - Corning is positioned well in the data center market, replacing copper with fibers that reduce heating costs [2] - Alphabet is viewed as a leading tech stock, with its AI model Gemini 3 outperforming competitors [2] - Goldman Sachs shows strong momentum in financials due to its Wall Street dealmaking business [2] - Home Depot's performance is uncertain despite being a beneficiary of interest rate cuts [2] - Eli Lilly is expected to expand its reach in the GLP-1 market with new drug developments [2] Stock Performance and Strategy - Meta Platforms is recognized as a premier ad company, with a more reasonable stock valuation due to increased AI spending [2] - Microsoft has seen a 14% decline, with uncertainty surrounding its AI assistant and OpenAI partnership [2] - Nvidia's stock is volatile due to geopolitical tensions, with a holding pattern expected until the GTC conference in March [2] - Palo Alto Networks is benefiting from AI integration in cybersecurity, presenting a potential buying opportunity [2] - Wells Fargo is transitioning into an investment house under CEO Charlie Scharf, with hopes for revenue diversification [2]

Core Insights - Applied Digital reported strong financial results for the fiscal second quarter of 2025, with revenues of $63.9 million, representing a 51% increase year-over-year, driven by growth in cloud services and data center hosting segments [13][14] - The company announced a strategic partnership with Macquarie Asset Management, which includes a $5 billion perpetual preferred equity financing facility, aimed at supporting the development of its high-performance computing (HPC) data center campus in Ellendale, North Dakota [9][10] - The demand for data center capacity is expected to grow significantly, with a projected shortfall of approximately 36 gigawatts in power available for U.S. data centers by 2028, positioning Applied Digital favorably to capitalize on this trend [18][19] Financial Performance - Revenues for the fiscal second quarter were $63.9 million, up from the previous year, with the Data Center Hosting segment generating $36.2 million and the Cloud Services segment contributing $27.7 million [13] - Cost of revenues increased to $52.4 million, primarily due to the growth in business operations [14] - The net loss attributable to common stockholders was $138.7 million, influenced by a loss on the conversion of debt and changes in fair value [15][16] Business Developments - The company has 286 megawatts of data center capacity for cryptocurrency clients, fully contracted and operating at full capacity [4] - Applied Digital is constructing a 400-megawatt campus in Ellendale, North Dakota, with a significant milestone reached in December 2024 [5][6] - The partnership with Macquarie will allocate up to $900 million for the Ellendale campus and provide the right of first refusal for an additional $4.1 billion for future projects [10][11] Market Positioning - Applied Digital aims to establish itself as a leader in the Tier 3 data center infrastructure sector, leveraging its strategic partnerships to enhance its market position [12][19] - The company is well-positioned to meet the growing demand for high-performance computing and AI applications, with ongoing evaluations of new opportunities in its pipeline [5][19] - The strategic investments from Macquarie and others validate the company's vision and approach, lowering the cost of capital and accelerating development [19]

Core Viewpoint - Applied Digital is navigating challenges in its data center hosting business while making significant progress in growth initiatives, particularly in cloud services and high-performance computing (HPC) infrastructure development. Financial Performance - For the fiscal fourth quarter of 2024, revenues reached $43.7 million, a significant increase from $22 million in the same period of 2023, driven by expanded capacity and cloud service contributions [12] - The data center hosting segment generated $26.9 million in revenue, while the cloud services segment contributed $16.8 million [12] - Adjusted EBITDA for the quarter was approximately $4.8 million, compared to $3.4 million in the fourth quarter of 2023 [15] - The net loss for the quarter was $64.8 million, or $0.52 per share, compared to a net loss of $6.5 million, or $0.07 per share, in the same quarter of the previous year [14] Business Developments - The company is developing a 100-megawatt HPC data center in Ellendale, North Dakota, with a letter of intent signed with a US-based hyperscaler for a total of 400 megawatts [5][10] - The Jamestown facility has operated at full capacity for seven consecutive quarters, while the Ellendale facility faced power outages due to transformer failures, which have now been resolved [6][5] - The cloud services business is expanding, with six clusters online in the first quarter of 2025, projecting an annual revenue run rate of $100 million to $110 million [28][67] Strategic Focus - The company aims to finalize a lease agreement with a Fortune 50 company for the Ellendale campus, which is expected to enhance its position in the HPC market and facilitate project-level financing [19][20] - Applied Digital is actively marketing three additional campuses totaling 1.4 gigawatts, with a focus on securing power availability and fiber connectivity for future developments [10][40] - The company is committed to improving its capital structure to support growth in both data center and cloud services, emphasizing the need for asset-level financing [32][67] Market Position - The competitive landscape includes established private data center companies, but Applied Digital differentiates itself by prioritizing power availability and site selection based on connectivity needs [59][64] - The company is focused on near-term power solutions and has developed a refined approach to site selection that considers latency and redundancy requirements [57][64]

Core Insights - Applied Digital reported a significant revenue growth of 67% to $60.7 million for the fiscal first quarter 2025, driven by cloud services and data center hosting segments [9][10] - The company is in advanced discussions for a lease with a US-based hyperscaler for its Ellendale HPC campus, which is expected to start with an initial capacity of 100 megawatts, with plans for future expansion [5][19] - The balance sheet has improved significantly due to strategic investments, with cash and equivalents totaling $86.6 million and shareholders' equity nearly doubling to $241.8 million [10][11] Business Developments - Construction of the Ellendale HPC campus is on schedule, with plans to expand capacity to 400 megawatts [5][12] - The data center hosting business currently operates at full capacity with 286 megawatts dedicated to cryptocurrency clients [6] - The cloud services segment is experiencing growth, with six clusters online and plans to deploy additional clusters in the second half of fiscal year 2025 [6][7] Financial Performance - The adjusted EBITDA for the quarter increased to $20 million, while the adjusted net loss was $21.6 million, or $0.15 per share [10] - Depreciation and amortization expenses rose significantly to $34.4 million, impacting overall costs [9] - The company incurred $4.1 million in expenses for facilities not yet generating revenue, which are expected to offset costs in the future [10] Market Position and Strategy - The company aims to become a leading platform for building and operating multiple HPC data centers at scale, capitalizing on rising demand from hyperscalers [14][15] - Recent investments and strategic partnerships are expected to enhance market visibility and support growth initiatives [5][15] - The company is exploring opportunities for heat recirculation in its facilities, potentially collaborating with agricultural sectors to utilize waste heat [48]

Core Viewpoint - A class action lawsuit has been filed against Fermi Inc. by Berger Montague PC on behalf of investors who acquired Fermi securities during the Class Period from October 1, 2025, to December 11, 2025, including its IPO on October 1, 2025 [1] Company Overview - Fermi Inc., based in Amarillo, Texas, aims to establish a network of large, grid-independent data centers powered by nuclear, natural gas, solar, and battery energy [3] - The company's flagship initiative, "Project Matador," is designed to create the world's largest private energy campus, providing dedicated power for AI data centers [3] Lawsuit Details - The lawsuit claims that investors became aware of Fermi's true prospects on December 12, 2025, when the company disclosed that its first tenant for the Project Matador AI campus had terminated a $150 million Advance in Aid of Construction Agreement, which was intended to cover construction costs [4] - Following this announcement, Fermi's stock price dropped by $5.16 per share, nearly 34%, closing at $10.09 per share on December 12, 2025 [4]

Economic Growth - The U.S. economy showed a better-than-expected growth performance in Q3, with a real GDP annualized growth rate of 4.4%, marking the fastest growth in nearly two years [1] - This growth is supported by strong exports and a reduction in the drag from inventory, contributing to the strongest consecutive quarters of growth since the recovery from the COVID-19 pandemic in 2021 [1] Key Metrics - GDP growth was reported at +4.4%, slightly above the prior estimate of +4.3% [2] - Consumer spending increased by 3.5%, with service spending growing at the fastest rate in three years and goods spending accelerating compared to the previous quarter [3] - Business investment rose by 3.2%, driven by sustained growth in computer equipment spending and record-high investments in data centers for artificial intelligence infrastructure [3] Labor Market and Inflation - Initial jobless claims remain low, indicating a robust labor market [3] - The preferred inflation measure of the Federal Reserve, the PCE price index excluding food and energy, rose by 2.9% in Q3, consistent with previous data [3] Trade and Consumer Behavior - Despite fluctuations in trade policy, consumer and business spending have remained resilient, providing support to the economy [2] - Economists are focusing on the "private domestic final sales" metric, which grew by 2.9% in Q3, indicating steady domestic demand [3]

Group 1 - The core viewpoint of the article is that Beijing aims to strengthen its position as a global hub for artificial intelligence by enhancing its computing power infrastructure to meet the growing demand for intelligent computing resources [1] Group 2 - Beijing's plan includes achieving a cumulative computing power scale of approximately 200,000 PetaFLOPS by 2027, with 60,000 PetaFLOPS already built by the end of 2025 [1] - The "Galaxy Computing Corridor" project will be optimized to create a collaborative computing supply system across regions, focusing on areas near industrial clusters and renewable energy sources [1] - Key regions for the construction of super nodes and industry nodes include Yanqing-Mentougou-Fangshan, Changping-Haidian, and Yizhuang-Tongzhou [1] - Collaboration with Hebei's Zhangjiakou, Langfang, and Tianjin's Wuqing will establish a computing supply corridor around Beijing, encouraging telecom operators and major internet companies to build large-scale computing clusters [1] - The initiative will also expand into western regions such as Inner Mongolia, Ningxia, and Qinghai to support large-scale training computing clusters for international competition in foundational models [1]

Group 1 - Applied Digital Corporation (NASDAQ:APLD) is involved in designing, building, and operating data centers that support high-performance computing and AI workloads [2] - The stock has gained attention due to the trend of cryptocurrency miners converting their operations into AI data centers, with significant price movements noted in the sector [1] - Recent IPOs in the sector, such as CoreWeave, have led to substantial stock price increases, with some companies like IREN and Riot Platforms seeing gains of over 40% [1] Group 2 - Despite the potential of APLD as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [3] - The article suggests that APLD and similar companies have experienced significant volatility, with declines of 50% to 57% from peak to trough [1]

Core Insights - Applied Digital has commenced construction on Delta Forge 1, an AI Factory campus designed to support an initial 430 MW of total utility power across two buildings, with significant scalability potential [1][2][4] Company Overview - Applied Digital specializes in designing, building, and operating high-performance, sustainably engineered data centers and colocation services tailored for artificial intelligence, cloud, networking, and blockchain workloads [7] - The company is headquartered in Dallas, TX, and was founded in 2021, recognized as the Best Data Center in the Americas 2025 by Datacloud [7] Project Details - Delta Forge 1 will initially consist of two 150-MW facilities covering over 500 acres, expected to create more than 200 full-time jobs and additional long-term contractor positions [3] - The campus is engineered to support advanced cooling and operational requirements for large-scale AI workloads, ensuring reliability and efficiency [2][4] Strategic Importance - Delta Forge 1 represents a critical growth phase for Applied Digital, addressing the increasing demand for AI infrastructure by integrating power, cooling, and operations effectively [4] - The project is expected to leverage the company's proprietary AI Factory blueprint, which has been refined through previous campuses, allowing for consistent and precise replication across markets [6] Market Demand - There is strong demand for purpose-built AI infrastructure capable of supporting high-density workloads, as evidenced by ongoing discussions with prospective investment-grade hyperscale customers [5]