Core Insights - The AI sector in the US stock market is experiencing a new round of valuation recovery, reigniting market enthusiasm [3] - Nvidia's stock price has returned to its early-year high, and it briefly regained the top position in global market capitalization [3] - Other AI-related stocks, such as Oracle (ORCL) and Broadcom (AVGO), have also reached historical highs [3] - Nvidia's CEO Jensen Huang has been actively signaling strategic upgrades, with Morgan Stanley raising the company's target price following the GTC conference [3][6] Nvidia's Strategic Developments - Jensen Huang's recent speeches have highlighted Nvidia's strategic plans, including the evolution of traditional data centers into "AI factories" [4] - The new Blackwell architecture features NVLink technology with a backplane bandwidth of 130TB/s, significantly enhancing AI performance [4] Market Predictions and Analyst Ratings - Morgan Stanley forecasts a strong acceleration in Nvidia's growth, particularly in the European market, where revenue could increase eightfold from 2024 to 2026 [6] - The firm maintains an "overweight" rating with a target price of $170, indicating a potential upside of 17.49% from Nvidia's closing price on June 16 [6] - Other Wall Street firms have also reiterated positive ratings and target prices for Nvidia, with estimates ranging from $170 to $190 [9] Investment Landscape - Nvidia has established a venture capital arm, Nventures, to identify leading startups in the AI field, focusing on both core AI technology and its applications across various industries [10] - The company's investments span AI infrastructure, autonomous driving, and AI drug development, reflecting the rapid penetration of AI across sectors [10] - Nvidia's investment strategy emphasizes not only financial support but also technological empowerment and resource collaboration [10] Performance of Nvidia-Related Stocks - CoreWeave (CRWV) has seen a remarkable increase of over 290% since its listing in March, highlighting the volatility and growth potential in the AI sector [3][11] - Other notable Nvidia-related stocks include Arm Holdings (ARM) with a market cap of $150.46 billion and Nebius Group NV (NBIS) with a market cap of $12.01 billion, both showing significant year-to-date performance [11]

Core Viewpoint - Bernstein analysts raised the target price for Bitcoin mining company IREN to $75, approximately 80% higher than the closing price on Tuesday, while maintaining an "outperform" rating [1] Group 1: Financial Projections - Analysts expect IREN's AI cloud business revenue to reach $500 million by early 2026 [1] - The current number of GPUs has increased to 23,000 [1] Group 2: Company Valuation - Bernstein attributes 87% of the company's enterprise value to AI and hosting services, with only 13% attributed to Bitcoin mining [1] - IREN's current market capitalization is $12.2 billion, surpassing MARA to become the largest publicly traded Bitcoin mining company [1]

Investment Rating - The report assigns a "Neutral" rating for CoreWeave (CRWV.O) based on its current market performance and outlook [4]. Core Insights - CoreWeave announced the acquisition of Core Scientific for approximately $9 billion in an all-stock transaction, aimed at accelerating its AI data center strategy [1]. - Following the announcement, CoreWeave's stock fell by 3% on July 7 and continued to decline by 5% on July 8, while Core Scientific's stock dropped nearly 18% on the same day [1]. - The acquisition is expected to be completed in Q4 2025, pending regulatory and shareholder approvals [8]. Financial Projections - Revenue is projected to grow significantly from $229 million in 2023 to $16.418 billion by 2027, with operating profit turning positive by 2024 [3]. - Adjusted net profit is expected to improve from a loss of $45 million in 2023 to a profit of $1.08 billion in 2027 [3]. - The price-to-sales ratio is forecasted to decrease from 317.5 in 2023 to 4.4 by 2027, indicating improved valuation metrics over time [3]. Transaction Details - The exchange ratio for the acquisition is set at 1:0.1235, with Core Scientific shareholders expected to hold less than 10% of the combined company post-transaction [8]. - The acquisition price of $20.40 per share represents a 66% premium over Core Scientific's stock price prior to acquisition discussions [8]. - CoreWeave aims to leverage Core Scientific's existing 1.3 GW power capacity data centers, with plans to repurpose mining facilities for high-performance computing [8]. Strategic Implications - The acquisition reflects a broader trend where cloud service giants are moving towards owning core energy assets rather than relying on power leasing [9]. - CoreWeave's integration of Core Scientific is anticipated to enhance operational efficiency and reduce future leasing costs, potentially saving over $5 billion in operational costs by 2027 [8]. - The ownership of critical power resources is expected to unlock approximately $5 billion in financing opportunities, which could lower the company's weighted average cost of capital (WACC) [8]. Market Performance - CoreWeave's stock has shown volatility, with a 1-month return of -7% and a 3-month return of 211% [5]. - The market is concerned about the high valuation premium associated with the acquisition, especially given Core Scientific's significant projected losses in 2024 [12]. - Investors are advised to monitor CoreWeave's contract renewals with key clients like Microsoft and OpenAI, as well as its ability to secure financing at lower rates [10].