This week's calendar brings a high-volume slate of earnings reports from the technology, consumer discretionary, and energy sectors, that will provide a look at current market momentum and act as barometers for investor sentiment. RIVN stock is moving ahead of earnings. See the chart and price action here. Here's a look at the earnings schedule for the week ahead: Monday, Feb. 9Before Market Open: Work management SaaS provider Monday.com Ltd. (NASDAQ:MNDY) and fintech company Pagaya Technologies Ltd. (NASDA ...

Core Insights - Meta Platforms reported strong earnings, exceeding estimates with a revenue increase of 24% to $59.9 billion for the quarter and over $200 billion for the full year, marking a 22% year-over-year growth [2][4] - The company forecasted capital expenditures (capex) for 2026 to reach between $115 billion and $135 billion, indicating a significant investment in AI and its core business [3][4] - This capex forecast represents a 73% increase from the previous year, with infrastructure spending expected to triple over two years, signaling a robust acceleration in AI investments [4] Industry Implications - Meta's substantial capex forecast is expected to benefit various sectors within the AI industry, particularly companies involved in data center operations [6] - CoreWeave, a key player in the AI sector, is likely to gain significantly from Meta's spending, having established a $14 billion agreement with Meta for cloud computing capacity through 2031 [7][8] - The partnership with CoreWeave positions it to capitalize on Meta's investments in AI infrastructure, potentially enhancing its market performance [6][7]

Core View - DA Davidson upgraded CoreWeave from Underperform to Neutral and raised its price target to $68.00 from $36.00 after shares rose more than 2% intraday on Monday [1] - The firm believes that the equity value in CoreWeave could ultimately be wiped out, as the enterprise's value is largely accruing to debt holders [1] OpenAI Fundraising Impact - A successful $100 billion fundraising by OpenAI could enable it to meet its 2026 commitments, including those involving CoreWeave, potentially delaying near-term pressure on the company [2] - However, this does not change the long-term value destruction inherent in CoreWeave's business model [2] Risks of Fundraising Shortfall - If OpenAI's fundraising effort falls materially short of the $100 billion target by the end of March, CoreWeave's equity value could deteriorate rapidly [3] - DA Davidson continues to advise investors to avoid the stock over the long term [3] Valuation Methodology - The new $68 price target is based on 1x remaining performance obligations, consistent with current market approaches for valuing neocloud companies [4] - While the methodology is described as imperfect due to return and backlog risks, it allows justification for the higher target under internal ratings criteria [4]

Core Insights - IREN Ltd., an Australian Bitcoin miner turned neocloud company, is currently undervalued following a significant stock pullback, despite having a strong client base including Microsoft, Together AI, and Fluidstack [1][3] Valuation Metrics - The company's Value score in Benzinga's Edge Stock Rankings has increased from 29.14 to 43.37 in just one week, even as the stock price has decreased by 13.3% over the past month [3] - IREN's stock is trading 45.31% below its 52-week high of $76.87, despite securing a $9.7 billion deal with Microsoft last month and indicating more large contracts are forthcoming [3] Financial Projections - The company projects an annual recurring revenue of $3.4 billion by the end of 2026, a significant increase from $501 million in fiscal year 2025, indicating strong growth potential in its AI infrastructure business [4] Historical Context - The stock is currently trading at 24 times earnings, which is considered undervalued compared to its historical averages [5] - IREN scores high on Momentum in Benzinga's Edge Stock Rankings, suggesting a favorable long-term price trend [5]

Group 1: Moore Threads Technology - Moore Threads Technology, an AI chipmaker, experienced a 500% increase in share price on its debut in China, raising approximately $1.13 billion (8 billion yuan) in its IPO on the Shanghai STAR Market [3][4]. - The company, often referred to as "China's Nvidia," is capitalizing on China's push for domestic chip manufacturing and tech self-sufficiency, having shifted focus from gaming graphics to AI accelerators [4]. - The stock began trading at a price-to-sales ratio of 123x, significantly higher than the peer average of 111x, with projected sales growth of up to 242% by 2025, reaching 1.5 billion yuan [5]. Group 2: U.S. Mineral Companies - The Trump administration is looking to increase equity stakes in critical minerals companies to counter China's dominance in raw materials, having spent over $1 billion in the past year on this initiative [6]. - This strategy has positively impacted stock prices of companies like MP Materials and Lithium Americas [6]. Group 3: Fluidstack - Fluidstack, a neocloud company, is seeking to raise around $700 million in funding, which would value the startup at $7 billion [7]. - The company, which recently relocated its headquarters to New York, is part of a growing sector that rents compute capacity for AI development and has secured deals with crypto miners [8]. - Fluidstack is also involved in a significant AI project in France, planning to build a €10 billion ($11.5 billion) supercomputer by 2026, highlighting the increasing demand for AI compute infrastructure [9].

Core Insights - Microsoft signed a $9.7 billion purchase agreement for AI cloud capacity from IREN, marking a significant validation for the neocloud sector [1] - IREN plans to purchase $5.8 billion worth of GPUs from Dell Technologies and anticipates nearly $1.9 billion in annualized revenue from this deal [2] - The deal highlights the transition of miners' hardware from volatile assets to strategic compute resources, linking blockchain and AI [3] Company Developments - IREN, previously focused on bitcoin mining, is now pivoting towards AI infrastructure, joining other companies like CoreWeave and Crusoe [2] - IREN's shares surged over 30% in premarket trading, contributing to a 500% increase in stock value this year due to the AI hardware boom [2] Industry Trends - The neocloud sector is emerging as a significant player in the AI infrastructure landscape, with companies repurposing energy-intensive mining operations for AI workloads [2] - Microsoft is leveraging leasing contracts with providers like IREN to address the growing demand for Azure AI services amid a global GPU shortage [3]