CoreWeave Inc. (NASDAQ:CRWV) is one of the best up and coming stocks to buy according to Wall Street. On January 5, DA Davidson analyst Gil Luria upgraded CoreWeave to Neutral from Underperform with a price target of $68, up from $36. Despite expressing some reluctance, the firm upgraded the stock and cited OpenAI’s potential $100 billion fundraise as a significant catalyst for CoreWeave. Although the firm noted that the success of this capital raise is not guaranteed, a successful round would enable Ope ...

Oracle can move AI capacity around fast, but it may not matter.Oracle (ORCL +0.49%) is signing mega-deals to deliver AI infrastructure to hundreds of clients. The company's remaining performance obligations, a metric that measures the value of signed customer contracts that haven't yet been recognized as revenue, reached $523 billion at the end of the most recent quarter.While Oracle has more than 700 AI customers, OpenAI accounts for most of that backlog. A reported $300 billion cloud infrastructure deal w ...

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]

Core Insights - IREN Limited's transition towards AI cloud infrastructure enhances long-term prospects but significantly increases capital intensity, indicating substantial future capital requirements that will affect its financial trajectory [1] Group 1: Capital Expenditure and Financials - IREN plans to deploy 140,000 GPUs by 2026, involving multibillion-dollar investments for site upgrades, including a $5.8 billion partnership with Microsoft [2] - In Q1 of fiscal 2026, IREN reported an operating cash flow of $142.4 million, while investing outflows reached $280.9 million, highlighting a capital strain due to heavy spending on property and equipment [3] - To address the capital gap, IREN is increasingly relying on external financing, including Microsoft prepayments and a $1.0 billion convertible note issuance [3] Group 2: Growth Potential - The Zacks Consensus Estimate predicts a revenue growth of 116.4% in 2026, reaching $1.10 billion, suggesting that rising AI demand may validate the initial capital investments [4][10] Group 3: Competitive Landscape - Key competitors CleanSpark and Applied Digital are also making significant CapEx investments in AI infrastructure and High-Performance Computing (HPC), with CleanSpark focusing on rapid commercial implementation and Applied Digital transitioning from crypto hosting to AI data centers [5][6][7] Group 4: Stock Performance and Valuation - IREN shares have increased by 188.5% over the past year, outperforming the broader Zacks Finance sector [8] - IREN is currently trading at a forward price/sales ratio of 6.78X, which is higher than the industry's 3.36X, indicating potential overvaluation [12] - The Zacks Consensus Estimate for IREN's fiscal 2026 earnings is 79 cents per share, a significant increase from 4 cents year-over-year, but the fiscal 2027 estimate shows a decline of 56.33% [15]

Oracle Corporation (NYSE:ORCL) is one of the AI Stocks in Focus This Week. On December 1, Deutsche Bank reiterated its Buy rating on the stock with a $375.00 price target. The firm is confident about Oracle’s long-term AI growth and sees favorable risk/reward. Oracle shares are trading at 27x consensus CY26 EPS, reflecting upfront costs in scaling its AI business. Due to this, investor appetite for growth seems limited until there are more visible results. Even though Deutsche Bank acknowledges these ris ...

BREAKING: Trillion-Dollar Club Now Boasts 11 Stocks Oracle (ORCL) stock is coming off a brutal month, with shares sliding more than 20% in November and slipping further on the first trading day in December. The top debate about Oracle has been its huge cloud deals with ChatGPT creator OpenAI — with analysts offering recent bullish and bearish views. Oracle stock surged in September after the company revealed that its remaining performance obligations surged 359% to $455 billion during its August-ended quart ...

Core Insights - Nvidia shares experienced volatility, initially rising 5% after a strong Q3 earnings report but closing down approximately 3.15% at $180.64, driven by concerns over high valuations in AI and technology stocks [1][20] - The company reported record revenues of $57 billion, reflecting a 62% year-over-year increase, and provided fourth-quarter guidance that exceeded analysts' expectations [1][20] - Broader market sentiment weakened, with major indices like the S&P 500 and Nasdaq experiencing declines, attributed to fears of an AI-driven bubble and uncertainty regarding Federal Reserve rate cuts [15][20] Company Performance - Nvidia's strong Q3 FY26 results initially boosted its stock, but the momentum quickly faded, dragging the Nasdaq Composite down from a 2.5% intraday rally to a close down 2.15% [6][20] - Other AI-related stocks, such as Advanced Micro Devices, also saw declines, with AMD dropping around 5% after early gains [12][20] - Companies like CoreWeave and IREN Ltd., which are strategic partners with Nvidia, initially saw gains but later reversed, indicating market volatility [13][20] Market Trends - Global markets mirrored the turbulence in U.S. tech stocks, with significant declines in Asian and European indices, including a nearly 11% drop in SoftBank shares [2][8] - The S&P 500 is on track for its worst November since 2008, highlighting deepening fears of an AI-driven bubble [9][20] - Treasury yields stabilized near 4.08%, while oil hovered around $58.09 and gold slipped toward $4,040, reflecting a risk-averse trading environment [7][20] Economic Indicators - The delayed September jobs report showed mixed signals, with hiring exceeding expectations but the unemployment rate rising to its highest level in almost four years, contributing to market uncertainty [17][21] - Japan announced a ¥21.3 trillion ($135.5 billion) stimulus plan to support its economy amid inflation concerns, indicating global policymakers' responses to slowing demand [8][21]

Core Insights - CoreWeave Inc. (NASDAQ: CRWV) shares dropped over 8% in premarket trading after the company revised its full-year revenue outlook downward due to delays from a third-party data center partner [1] - The company now expects fiscal 2025 revenue to be between $5.05 billion and $5.15 billion, a decrease from the previous guidance of $5.15 billion to $5.35 billion, while analysts had forecasted $5.29 billion [1] Financial Performance - Despite the revised guidance, CoreWeave reported strong third-quarter results with quarterly revenue reaching $1.36 billion, surpassing expectations due to robust demand for its AI cloud infrastructure powered by Nvidia graphics processors [2] - For the three months ending September 30, the company reported a per-share loss of $0.22, which was better than the forecasted loss of $0.51 [2] Operational Strategy - The adjusted operating income margin decreased to 16% from 21% year-over-year [3] - The company plans to significantly increase capital expenditures next year, targeting between $12 billion and $14 billion to expand data center capacity in response to rising AI workloads [3]

Core Insights - IREN Ltd. has secured a significant five-year contract worth $9.7 billion with Microsoft to provide advanced AI cloud infrastructure, marking a strategic shift towards hyperscale AI workloads [1][4] - The company will supply Microsoft with large-scale AI compute capacity utilizing NVIDIA's latest GPUs at its Texas campus, which includes new liquid-cooled data-center capacity [2] - IREN has also entered a $5.8 billion hardware procurement agreement with Dell Technologies to support the Microsoft contract [3] Financial Impact - The Microsoft deal is expected to enhance IREN's revenue, with projections of over $500 million in annual recurring revenue (ARR) once the full deployment of 23,000 GPUs is operational by early 2026 [5] - Prior to this contract, IREN had already secured multi-year AI cloud contracts covering around 11,000 GPUs, generating an estimated $225 million in ARR expected by late 2025 [5] Market Reaction - Following the announcement, IREN's stock surged over 20%, indicating strong market confidence in the company's new direction and its role as a credible hyperscale infrastructure provider [4][8] - Analysts have described the partnership with Microsoft as a "game-changing" moment for IREN, elevating its status in the industry [4][8] Operational Considerations - The success of the Microsoft contract is contingent on IREN's ability to meet strict deployment milestones and manage infrastructure delivery effectively [6] - The $5.8 billion hardware investment introduces capital intensity and potential execution risks, which could impact the project's overall economics [6][7] Customer Concentration - IREN's increasing reliance on Microsoft as a major client may pose concentration risks, and any delays in GPU supply chains or regulatory changes in Texas could affect project viability [7]

Group 1 - Oracle, along with a consortium including Silver Lake and Andreessen Horowitz, plans to acquire 80% of TikTok's US operations to prevent a ban in the US [2] - Oracle's stock recently dropped 10% in a week due to investor concerns over high costs and potential margin pressure from its AI cloud infrastructure expansion [2] - Oracle competes directly with Salesforce in the Application Software sector [2] Group 2 - Both Oracle and Salesforce currently trade at a lower Price-to-Operating Income (P/OpInc) multiple compared to Synopsys [6] - Despite lower valuations, Oracle and Salesforce are exhibiting superior growth rates in revenue and operating income [6] - The Trefis High Quality Portfolio has outperformed its benchmark, achieving returns exceeding 105% since inception, indicating a less volatile investment option compared to individual stocks like Oracle [3]