An Nvidia Corp. (NASDAQ:NVDA) partner company, which counts Microsoft Corp. (NASDAQ:MSFT) , Together AI and Fluidstack among its customers, is priced very cheaply relative to its historic valuations, following the stock’s steep pullback over the past couple of weeks. The stock in question is Australian Bitcoin (CRYPTO: BTC) miner turned neocloud, IREN Ltd. (NASDAQ:IREN) , which has seen its Value metrics soar in Benzinga’s Edge Stock Rankings, amid a fall in its stock price. Prominent Neocloud Trades Cheap ...

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]