Key Takeaways Celestica Inc. (CLS) and Jabil Inc. (JBL) are two leading players in the electronics manufacturing services (EMS) industry. Celestica is one of the largest EMS companies in the world, primarily serving original equipment manufacturers, cloud-based and other service providers, and business enterprises across several industries. It offers a comprehensive range of manufacturing and supply-chain solutions that support various customer requirements, from low-volume, high-complexity custom products ...

Core Insights - Applied Digital (APLD) is shifting its focus towards hyperscale data center leasing, particularly for AI infrastructure, as its Cloud Services segment struggles to achieve profitability [1][4] - APLD's third-quarter fiscal 2025 revenues increased by 22% year-over-year to $52.9 million, but the Cloud business generated only $17.8 million, reflecting a sequential decline due to technical issues and a shift to on-demand capacity [1][9] - The Data Center Hosting segment is gaining traction, supported by significant financing agreements, including a $5 billion deal with Macquarie and a $375 million agreement with SMBC [2] Financial Performance - APLD's Cloud Services business incurred over $10 million in losses during the fiscal third quarter, facing competitive pressure from CoreWeave [3] - The company is exploring options to divest or spin out its Cloud Services business, which is seen as a hindrance to its leasing negotiations and potential REIT transition [3][4] - APLD's stock has increased by 20.7% year-to-date, contrasting with a 3.5% decline in the industry [8] Strategic Developments - APLD is developing its Ellendale campus with a planned 400MW critical IT load, with the first 100MW facility expected to be operational in the fourth quarter of 2025 [2] - A landmark $7 billion lease agreement with CoreWeave is expected to provide recurring revenues over 15 years, underscoring the economic potential of APLD's HPC infrastructure [2][9] - The company has a planned buildout of 1.4GW and is engaged in active lease discussions, although it faces execution risks related to high capital expenditures of $30–50 million per month [3] Valuation and Estimates - APLD trades at a forward price-to-sales ratio of 7.97X, which is above the industry average and its five-year median of 5.03X [10] - The Zacks Consensus Estimate for APLD's fiscal 2026 earnings suggests a year-over-year increase of 73.6% [11]

Core Viewpoint - DMG Blockchain Solutions Inc. is focusing on advancing its AI strategy while maintaining its Bitcoin mining operations, reflecting a strategic shift towards artificial intelligence and a reduction in Bitcoin holdings to manage its balance sheet [1][2][3]. Group 1: Operational Results - In April 2025, DMG mined 30 BTC, a decrease from 32 BTC in March, attributed to increased network difficulty and a shorter month [1][7]. - The company's hashrate increased to 1.93 EH/s, up from 1.82 EH/s in March, supported by the deployment of additional Bitmain S21+ Hydro miners [1][7]. - DMG has reached its target hashrate of 2.1 EH/s, although it may be slightly adjusted for operational efficiency during warmer months [1]. Group 2: Financial Strategy - DMG reduced its Bitcoin treasury from 458 BTC in March to 351 BTC in April, using the proceeds to fund the acquisition of AI data center infrastructure and to make a material paydown on its $20 million loan with Sygnum Bank [2][7]. - The acquisition involved 2 megawatts of prefabricated AI data center infrastructure, marking a significant step in DMG's strategy to shift data center capacity towards AI [2][3]. Group 3: Strategic Focus - The CEO of DMG emphasized the importance of utilizing returns from Bitcoin mining to fund AI capital expenditures, aiming to secure high-value agreements with government and enterprise users seeking AI solutions in Canada [3]. - The company is committed to creating a carbon-neutral Bitcoin ecosystem through its subsidiary, Systemic Trust Company, which facilitates sustainable Bitcoin transactions [4].