Oracle ( NYSE:ORCL ) shares are making a strong comeback today, shaking off ongoing worries about the company's hefty spending, climbing debt, and the risks of its all-in bet on artificial intelligence (AI) cloud infrastructure. ...

Iren Limited (NASDAQ: IREN) shares may be getting a bit of a boost along with other tech sector names today, but the stock of the artificial intelligence (AI) infrastructure company has tanked this week. Shares of the Bitcoin miner turned AI cloud infrastructure owner have plunged nearly 20% this week as of midday Friday, according to data provided by S&P Global Market Intelligence. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, w ...

Group 1 - Nebius Group N.V. (NASDAQ:NBIS) has experienced significant growth, gaining over 80% in the past 6 months, and is rated as a Strong Buy by 75% of analysts covering the stock [1] - Morgan Stanley initiated coverage with a Market Perform rating and a price target of $126, highlighting the company's strong position to scale its AI infrastructure due to its software platform and diverse customer base [2] - The company also benefits from non-core businesses and equity stakes that enhance its overall value, despite being rated with Market Perform [3] Group 2 - Challenges cited by Morgan Stanley include rising depreciation from a 4-year asset life, which pressures margins and EBIT, and expectations of negative free cash flow due to heavy capital expenditures for AI infrastructure [4] - The firm expressed skepticism regarding Nebius Group N.V.'s ambitious target of $7 billion to $9 billion in annual recurring revenue (ARR) by Q4 2026, suggesting it may be overly optimistic [4] - Nebius Group N.V. is headquartered in Amsterdam and focuses on developing and operating AI cloud infrastructure for training and inference of advanced machine learning models [5]

Nebius Group N.V. (NASDAQ:NBIS) is one of the AI Stocks Making Waves on Wall Street. On January 15, Morgan Stanley analyst Josh Baer initiated coverage on the stock with an “Equalweight” rating and a price target of $126. The analyst highlights AI infrastructure scale-up potential for NBS, urging investors to focus on long-term metrics for valuation instead of near-term earnings. Nebius is well-positioned to benefit from the build-out of AI infrastructure, said Baer, noting its potential to bring signifi ...

Core Insights - Nebius Group (NASDAQ: NBIS) experienced significant growth in 2025, particularly in its core AI cloud infrastructure business, leading to a stock surge of 202.2% for the year [1]. - The company reported Q2 sales of $105 million but raised its annual revenue run rate guidance to up to $1.1 billion by the end of 2025, indicating a potential tripling of revenue in a short time [3]. - Major agreements with hyperscalers, including a $19.4 billion deal with Microsoft and a $3 billion deal with Meta Platforms, signal strong demand for Nebius' AI infrastructure [4][5]. Business Expansion - Nebius is not only focused on AI cloud infrastructure but is also expanding into three related business segments: Toloka for AI data needs, educational technology, and Avride, which manufactures autonomous vehicles and delivery robots [6]. - The growth potential from these additional segments provides investors with optionality, particularly with Avride showing significant upside potential [7]. - Despite the promising outlook, the market has already priced in substantial growth for Nebius, necessitating successful execution to justify its current valuation [8].

Core Viewpoints - CoreWeave's stock price increased by 12.22% to close at $89.93, reflecting strong investor interest and confidence in the company's AI infrastructure capabilities [2][3] - The company has experienced significant growth of 125% since its IPO in 2025, indicating robust market performance [2] - CoreWeave's trading volume reached 42.1 million shares, which is 49% above its three-month average, suggesting heightened investor activity [2] Company Developments - CEO Michael Intrator addressed concerns regarding the lifespan of the GPUs accumulated by CoreWeave, which positively influenced investor sentiment [5] - Analysts have shown support for CoreWeave as it plans to integrate Nvidia's next-generation Rubin AI architecture into its infrastructure, enhancing its competitive edge [6] - Nvidia holds a significant minority stake in CoreWeave, which adds to investor confidence regarding the company's future growth prospects [6] Market Context - The S&P 500 and Nasdaq Composite saw slight increases, indicating a generally positive market environment for tech and cloud infrastructure stocks [4] - Other cloud infrastructure peers, such as Cloudflare and DigitalOcean, also experienced gains, reflecting a broader trend of investor interest in AI-related services [4]

Core Insights - Iren Limited has successfully transitioned from a Bitcoin mining company to a high-performance AI computing provider, benefiting from the growing demand for AI infrastructure in 2025 [1][4] - The company reported a significant revenue increase of 355% year-over-year, reaching $240 million in Q1 of fiscal 2026, with expectations to achieve a $3.4 billion annual revenue run rate by the end of 2026 [5] - Iren has secured a $9.7 billion multi-year AI cloud contract with Microsoft, indicating strong demand from hyperscalers for specialized compute infrastructure [6] Company Transition - Iren Limited began as a cryptocurrency mining operation, utilizing server-filled data centers, and has shifted focus towards AI computing due to increased demand for compute capacity [4] - The revenue generated from crypto mining has facilitated the company's transition to building AI cloud infrastructure, allowing for the replacement of Bitcoin mining microchips with AI GPUs [4][9] Market Performance - Despite a strong performance throughout 2025, Iren's shares experienced a 21% drop in December as some investors chose to lock in profits after a nearly fourfold increase in stock value [2][7] - The December slump was attributed to the stock's risk level, prompting investors to secure gains amid the volatile market [7] Financial Considerations - Iren is investing heavily in infrastructure projects, spending beyond the revenue generated from crypto mining, which raises concerns about debt levels for potential investors [8] - The company is generating cash flow while expanding its AI infrastructure, which supports its transition from crypto mining to AI cloud services [9]

Group 1 - CoreWeave Inc. (NASDAQ:CRWV) has been upgraded to Neutral from Underperform by DA Davidson, with a new price target of $68, up from $36, primarily due to the potential $100 billion fundraise by OpenAI [1][2] - The success of OpenAI's capital raise is uncertain, but if successful, it would help OpenAI meet its 2026 obligations, including those to CoreWeave [2] - Despite the upgrade, there are concerns that CoreWeave's equity could become worthless as debt holders currently own the entire enterprise value, although the fundraise could delay issues related to the company's capital structure [2] Group 2 - CoreWeave announced plans to integrate the Nvidia Rubin platform into its AI cloud infrastructure, aiming to launch in H2 2026, positioning itself as one of the first cloud providers to deploy this technology [3] - The deployment will utilize Nvidia Vera Rubin NVL72 racks, managed through CoreWeave's proprietary Rack Lifecycle Controller, which coordinates power delivery, liquid cooling, and hardware validation [4] - CoreWeave operates a cloud platform that supports scaling, support, and acceleration for GenAI, building infrastructure for enterprise compute workloads [4]

Core Viewpoint - Oracle is rapidly expanding its AI infrastructure capabilities through significant contracts, particularly with OpenAI, which has led to a substantial increase in its remaining performance obligations (RPO) to $523 billion [1][2]. Group 1: AI Infrastructure and Customer Contracts - Oracle has over 700 AI customers, with OpenAI being a major contributor to its RPO growth, attributed to a $300 billion cloud infrastructure deal [2]. - The company can quickly reallocate AI computing capacity between customers, taking only a few hours to do so, which minimizes customer concentration risk [5][7]. - Oracle's ability to shift capacity allows it to maintain high utilization rates, crucial for its gross margin, as downtime would negatively impact profitability [8]. Group 2: Market Risks and Future Outlook - While current demand for AI infrastructure exceeds supply, there is a potential risk of oversupply in the future, which could pose significant challenges for Oracle if a major customer fails to pay [9][10]. - Major tech companies are independently building substantial AI capacity based on optimistic demand forecasts, leading to concerns about future market saturation [11]. - Oracle's reliance on OpenAI for fulfilling its commitments raises concerns about financial stability in an oversupply scenario, which could become a significant risk in the coming years [12][13].

Core Insights - CoreWeave, Inc. (CRWV) reported a third-quarter 2025 adjusted EBITDA of $838.1 million, significantly up from $378.8 million in the same quarter last year, with EBITDA margins exceeding 60% [1][9] - The company benefits from long-term customer agreements and a specialized infrastructure model optimized for AI workloads, allowing for higher returns per deployed GPU compared to traditional cloud providers [2][9] - CoreWeave's capital expenditures are projected to be between $12 billion and $14 billion for 2025, a reduction from earlier estimates, with expectations for 2026 expenditures to more than double 2025 levels [6] Growth Drivers - Demand from AI labs, enterprise customers, and hyperscale partners remains strong, driven by a shortage of high-performance compute capacity [5] - CoreWeave has secured significant multi-year agreements, including contracts worth up to $14.2 billion with Meta and $22.4 billion with OpenAI, marking its transition to a global AI infrastructure leader [5] - The company’s backlog and remaining performance obligations provide strong visibility into future revenue and profitability [4] Competitive Landscape - Nebius Group N.V. (NBIS) is also focused on AI infrastructure, recently announcing a $3 billion agreement with Meta, with revenue expected to ramp up in 2026 [7] - Microsoft Corporation (MSFT) plans to increase its AI capacity by over 80% in 2025 and is investing heavily in data centers, including the launch of the world's most powerful AI data center [8][10] Market Performance - CoreWeave's shares have increased by 88% over the past year, outperforming the Internet Software industry's growth of 9.6% [11] - The company's shares are trading at a Price/Book ratio of 9.44X, significantly higher than the industry average of 6.07X [12] - The Zacks Consensus Estimate for CoreWeave's earnings for 2025 has been revised upward over the past 60 days [13]