By Mike Dolan Feb 10 - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets The dollar is back on the slide this week, even as some confidence returns to the broader stocks universe, with tech shares rallying and MSCI's all-country index jumping to new ​records. I’ll get into that and more below. But first, check out my latest column on the one key signal being clouded by 2026's chaotic ‌news flow. And listen to the latest episode of the Morning Bid dai ...

Core Insights - The recent earnings reports indicate that not all investments in AI technology are yielding expected returns, prompting investors to reassess which companies are essential in the AI sector [1] - Despite a reality check, the AI industry is projected to continue its expansion, with the AI data center market expected to grow from $500 billion annually to $1.4 trillion by 2030, according to ARK Invest and Gartner [2] - The focus for investment should shift towards the data center segment of AI, where significant growth opportunities are anticipated, particularly for companies like Nvidia and Palantir Technologies [3] Investment Opportunities - Real Estate Investment Trusts (REITs) such as Equinix and Digital Realty Trust are identified as optimal investment vehicles for capitalizing on the AI industry's growth, particularly in the data center space [4] - The AI industry is characterized by a preference for leasing data center access rather than ownership, leading to recurring income streams for investors [5] - REITs are positioned to provide reliable cash flow and sustained dividends, making them suitable for investors looking for stable returns in the evolving AI landscape [7][6]

Core Viewpoint - Applied Digital is capitalizing on the AI data center boom, but achieving significant growth to a $100 stock price hinges on effective execution, margins, and cash flow [1] Group 1: Company Performance - Applied Digital is scaling AI data centers at a rapid pace, positioning itself as a leader in the industry [1] - The company's future stock price growth is contingent upon its ability to manage operational execution flawlessly [1] Group 2: Investment Considerations - Investors need to understand the catalysts that could drive the company's growth, as well as the associated risks [1] - Key factors influencing the company's performance include margins and cash flow management [1]

Core Insights - Cipher Mining is transitioning from primarily crypto mining to securing long-term contracts with tech giants for AI data centers, with Amazon being a significant customer through a 15-year lease worth $5.5 billion [1] Group 1: AI and Tech Contracts - Cipher Mining is expected to win more contracts as it brings additional gigawatts online, currently holding a 3.4 gigawatt pipeline that remains largely unallocated [2] - The Amazon deal illustrates that Cipher Mining can secure contracts without immediate energy delivery, with part of the 300 megawatts promised to Amazon expected by July 2026 [9] Group 2: Crypto Mining Operations - Cipher Mining's crypto mining revenue has nearly tripled year-over-year to $71.7 million, although the segment remains unprofitable with a reduced operating loss of $37.6 million compared to $91.4 million in the same quarter last year [4] - The company holds $170 million in Bitcoin, providing direct exposure to Bitcoin price movements, unlike other miners who sell their mined Bitcoin immediately [5] Group 3: Expansion and Infrastructure - Cipher Mining has acquired a 200 megawatt site in Ohio, expanding its geographical footprint and increasing its total pipeline to 3.4 gigawatts across eight sites [7] - This expansion allows Cipher Mining to build its energy pipeline more rapidly while already having sufficient gigawatts to support future tech deals [8]

Core Viewpoint - Applied Digital is becoming a significant player in the AI infrastructure market, with its stock price increasing by 400% over the past year due to lucrative long-term lease contracts with cloud infrastructure providers [1]. Group 1: Stock Performance and Analyst Expectations - Analysts predict that Applied Digital's stock will continue to rise, with a 12-month median price target of $43.50, indicating an 18.5% potential upside from current levels [4]. - All 14 analysts covering Applied Digital rate it as a buy, reflecting strong confidence in the company's future performance [4]. Group 2: Financial Metrics and Growth Projections - Applied Digital's market capitalization is currently $9.8 billion, with a current stock price of $34.95 [5]. - The company has signed lease contracts worth $16 billion for 600 megawatts of AI data center capacity, which is expected to drive significant revenue growth [6]. - Revenue is forecasted to increase by 61% in the current fiscal year to $347 million, with a projected growth of 65% in the next fiscal year, potentially reaching $573 million [9][11]. Group 3: Revenue Recognition and Future Capacity - Applied Digital has begun recognizing lease revenue and anticipates a ramp-up in lease revenues over the next quarter, with expectations for meaningful revenue growth over the next 18 to 24 months [7]. - The company is also developing a new 430 MW data center campus and is in discussions to contract this capacity, indicating solid growth prospects beyond 2026 [7]. Group 4: Valuation and Market Potential - The stock currently trades at 32 times sales, a multiple justified by its strong revenue pipeline, with the potential for the market cap to reach $18.3 billion, nearly 80% above the current stock price [12].

Group 1 - The Dow Jones Industrial Average surpassed 50,000 points for the first time, gaining over 1,000 points in a single day, which is an increase of more than 2.2% [1] Group 2 - Chip stocks experienced a surge due to expectations of increased spending on AI data centers by Amazon and Alphabet, with shares of Nvidia, Advanced Micro Devices, and Broadcom rising by more than 7% [2] - Amazon's stock fell nearly 7% after announcing a plan to increase capital expenditures by over 50% this year in response to the AI race, following a similar announcement from Alphabet [2]

Core Insights - Google is planning a significant investment in artificial intelligence (AI) data centers and the associated chips necessary for their operation [1] Group 1: Investment Plans - The company aims to enhance its AI capabilities through a substantial financial commitment to build new data centers [1] - This investment will also focus on developing advanced chips to support the increased demand for AI processing power [1] Group 2: Industry Implications - The move is expected to strengthen Google's position in the competitive AI landscape, potentially leading to increased market share [1] - By investing in both infrastructure and hardware, Google is positioning itself to better meet the growing needs of AI applications across various sectors [1]

Iren (NASDAQ: Iren) has been one of the most volatile artificial intelligence (AI) stocks of the year. The stock had multiple 10%+ price swings in both directions over the past few days as its earnings date approaches. The AI data center provider reports earnings on Feb. 5, where some investors speculate it will announce another lucrative deal with a hyperscaler. However, not every investor is waiting for earnings to come out. The stock is already up by more than 20% year to date as investor enthusiasm bui ...

Core Insights - IREN LIMITED (NASDAQ:IREN) is transitioning from a crypto mining company to a leader in AI infrastructure, positioning itself for potential outperformance in the AI sector [1][4][6] - The S&P 500 is reaching record highs, driven by technology and AI stocks, encouraging a shift towards higher-risk investments in AI infrastructure [2] - IREN's Sweetwater 1 facility, with a capacity of approximately 1.4 gigawatts, is crucial for realizing its Annual Recurring Revenue (ARR) and sustaining valuation into fiscal year 2026 [3][4] Company Performance - IREN's stock price is currently around $57.85, reflecting a decrease of about 8.09% from a previous high of $76.87 over the past year [5] - The company has a market capitalization of approximately $16.4 billion, with a trading volume of around 17.8 million shares today [5] - IREN's stock has seen an 8.30% increase recently, indicating growing momentum in the market [4][6] Industry Context - IREN and CoreWeave Inc. are recognized as leading players in the AI infrastructure sector, with significant investments driving their growth [2][6] - CoreWeave has received a $2 billion investment from Nvidia, enhancing its partnership and expansion efforts [2] - The AI infrastructure sector is experiencing a rebound, with companies like IREN positioned to capitalize on the increasing demand for AI workloads [2][4]

Core观点 - CoreWeave's shares surged following the announcement of an expanded partnership with Nvidia, which previously contributed to discussions around the AI bubble on Wall Street [1][9] 分组1: 合作与投资 - CoreWeave and Nvidia have expanded their partnership to enhance the development of AI data centers utilizing Nvidia's technology stack [2] - Nvidia has committed an additional $2 billion investment in CoreWeave, building on a previous $250 million investment during CoreWeave's IPO [2] - CoreWeave will implement Nvidia's latest products, including storage systems and a new central processing unit [2] 分组2: 股市表现 - CoreWeave's stock increased by 8% in recent trading, leading a broader rally in AI stocks [3] - Since the beginning of the year, CoreWeave's stock has risen 40%, recovering from losses experienced during the AI bubble concerns in late 2025 [5] - The AI sector has seen a resurgence, particularly in memory chip and data storage stocks, which have benefited from a memory shortage [9] 分组3: 市场担忧 - Investors have expressed concerns that tech companies, including CoreWeave, may be overestimating future AI demand, leading to difficulties in recouping substantial investments [4] - CoreWeave was significantly impacted by scrutiny over debt-financed AI investments, with its shares losing over 50% of their value from late October to mid-December last year [7] - Skeptics draw parallels between CoreWeave's partnership with Nvidia and the vendor-financing deals of the Dotcom Bubble, suggesting that Nvidia's investments may be subsidizing an unsustainable AI data center boom [8]