All right, back to your money and your portfolio. Jed Ellerbrook is with us, portfolio manager at Argent Capital Management. How do you feel about the market.>> Um, I think the market continues to do well, mostly on the back of AI. Um, and then otherwise, you know, I think we have a fairly slow growth economy. Consumer spending is rising but slowly relying more and more on um high-income folks to to support continued growth.and uh you know business investment is hanging in there and uh corporate earnings gr ...

Core Idea - The strong demand for AI workloads in the cloud is significantly enhancing CoreWeave's revenue pipeline, with recent multibillion-dollar contracts indicating robust growth potential [2][6]. Company Overview - CoreWeave operates AI data centers in Europe and the U.S., leveraging Nvidia's GPUs to attract major tech clients like Microsoft, Meta Platforms, and OpenAI [4][5]. - The company has secured substantial contracts, including a $14.2 billion deal with Meta and a $6.5 billion contract with OpenAI, totaling $22.4 billion in contracts for the year [5]. Revenue Backlog and Growth Potential - CoreWeave's revenue backlog has surged from $30.1 billion at the end of Q2 to over $50 billion, reflecting a more than threefold increase [6]. - The company anticipates finishing 2025 with an estimated revenue of $5.25 billion, positioning it as a strong competitor to Oracle in the cloud AI infrastructure market [7]. Capacity Expansion - CoreWeave plans to invest $20 billion to $23 billion in capital expenditures in 2025, a significant increase from $8.3 billion in 2024, indicating aggressive capacity expansion [8][9]. - The total contracted data center power capacity has increased to 2.2 gigawatts from 600 megawatts, enabling the company to service more AI workloads [10]. Market Position and Valuation - CoreWeave's revenue is projected to grow by nearly 2.8 times this year, with expectations of a 3.4 times increase over the next two years, outpacing Oracle's growth [14][15]. - The current valuation at 19 times sales is considered attractive compared to Oracle's 14 times sales, suggesting a solid investment opportunity [16].

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the transformative impact of **Artificial Intelligence (AI)** on various industries, particularly focusing on the **data center** sector and its power demands [6][19][38]. Core Insights and Arguments 1. **Historical Context of Technological Shifts**: The evolution of technology has historically driven economic progress, with AI representing the latest paradigm shift akin to the impact of railroads and the internet [5][6][7]. 2. **Capital and Infrastructure Needs**: Significant capital investment is required to support the infrastructure necessary for AI, with the average cost to establish a 250 MW AI data center estimated at **$12 billion** [8][9]. 3. **Surge in Power Demand**: Global data center power demand is projected to increase by **160% by 2030**, primarily due to AI workloads that utilize energy-intensive GPUs [9][17][37]. 4. **Challenges in Power Supply**: The existing power grid is not equipped to handle the anticipated surge in demand, with current power supply growth lagging behind the needs of AI development [9][40][41]. 5. **Investment Trends**: Hyperscalers are expected to invest **$1 trillion** in AI technology by 2027, indicating a robust growth trajectory for the sector [22][38]. 6. **Data Center Development**: The demand for data centers is outpacing supply, with vacancy rates at a record low of **3%** and a projected shortfall in capacity [28][72]. 7. **Innovative Financing Solutions**: New financing structures are emerging to support the capital-intensive nature of AI data centers, including joint ventures and creative credit enhancements [30][33][80]. Additional Important Insights 1. **Geopolitical Implications**: Data centers are becoming strategic assets in geopolitical relations, with countries leveraging their development for economic and political advantages [70][71]. 2. **Environmental Considerations**: The transition to renewable energy sources is critical, but current technologies like wind and solar are intermittent, necessitating a diverse energy mix including nuclear and natural gas [59][62]. 3. **Regulatory Challenges**: The expansion of power capacity faces regulatory hurdles, with the need for faster permitting processes to meet the growing demand [40][52]. 4. **Long-term Energy Solutions**: The exploration of small modular reactors (SMRs) and other advanced technologies is underway to provide reliable, carbon-free power for data centers [48][65]. 5. **Market Dynamics**: The capital markets are evolving to meet the unique demands of AI infrastructure, with a shift towards more integrated financing solutions that encompass both public and private capital [85][88]. This summary encapsulates the critical themes and insights from the conference call, highlighting the intersection of AI, data center infrastructure, and the evolving energy landscape.

Sati is managing partner and fund manager at Douglas Elaine and Associates. We've got him all hour. We'll talk markets, stock picks, AI, OpenAI, and Nvidia.Also meet one of America's top financial advisors. Sirat, welcome. >> Thank you.>> Okay, we're going to get to all that stuff we just laid out. But let me ask you about the Federal Reserve. Your take on what you just heard for the minutes.>> Look, I think Steve is spot on. They're in a quandry, right. We don't have any data and the data that leads to inf ...

SoftBank Group plans to acquire ABB’s robotics business for $5.375 billion, saying the move will complement its existing investments in artificial intelligence and robots.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins requ ...

Core Insights - The current landscape of artificial intelligence (AI) is characterized by significant investments and speculation, leading to discussions about whether it is an AI bubble or boom [1][4][6]. Investment and Partnerships - OpenAI has entered a multiyear, multibillion-dollar agreement with AMD for next-generation GPUs, with the option to acquire up to 10% of AMD [2]. - Nvidia is investing $100 billion into OpenAI, which is also a key customer for Nvidia's products [2]. - Major tech companies like Amazon, Google, Meta, and Microsoft are also heavily investing in AI infrastructure, with Oracle committing $40 billion for Nvidia chips to support OpenAI's Project Stargate [3]. Market Valuations - Nvidia's market capitalization exceeds $4.5 trillion, while OpenAI is valued at $500 billion, surpassing SpaceX's valuation of $400 billion [6]. - Microsoft and Google's valuations have crossed the $3 trillion mark, with Microsoft approaching $4 trillion [7]. Market Sentiment and Future Outlook - Concerns about an AI bubble are rising as stock prices and corporate valuations soar, reminiscent of the dot-com bubble [4][6]. - Despite fears, some experts believe there is substantial long-term demand for AI technologies, suggesting that investments in AI infrastructure will yield returns over time [5][6]. - Jeff Bezos has expressed that while the current excitement may lead to funding both good and bad ideas, some investments will ultimately pay off [7][8].

Core Insights - Nebius Group's shares have increased by 16% since last week, indicating positive market sentiment and potential growth opportunities [1] - The company has acquired 79 acres of land in Birmingham, Alabama, for $90 million, which aligns with its expansion plans in the U.S. [3] - CoreWeave, a competitor, signed a significant multiyear deal worth $14 billion with Meta Platforms, highlighting ongoing demand for AI infrastructure [2][5] Industry Trends - There is a strong appetite for AI data centers, suggesting that the demand for AI infrastructure remains robust [2] - The competition among AI data center providers is intensifying, but many hyperscalers utilize multiple providers, which benefits the entire sector [3] - The chief investment officer of Bokeh Capital Partners noted that the demand for high-quality AI chips is "limitless," indicating a positive outlook for the industry [3] Company Performance - Nebius Group's stock has surged approximately 310% this year, reflecting strong investor interest and confidence in its business model [4] - The company is expected to secure additional significant deals with hyperscalers, bolstered by its strong balance sheet [4] - Nebius's involvement in other sectors, such as autonomous driving, could provide further value in the future [4]

Yuki Iwamura / Bloomberg / Getty Images CoreWeave shares have more than tripled in value since the company went public in March Key Takeaways CoreWeave shares surged Tuesday after the cloud computing company backed by Nvidia struck a new agreement with Meta Platforms valued at up to $14.2 billion. The announcement marks the latest in a string of multibillion-dollar deals for CoreWeave to provide infrastructure to support booming AI demand. CoreWeave (CRWV) shares soared Tuesday after the provider of ...

More importantly, by shifting to serving AI needs, crypto mining companies can benefit from a higher market valuation as the AI story plays out.They have power agreements, data center locations, agreements for low-cost electricity – a powerful recipe for meeting today’s AI demand.Also, crypto mining companies stand in a strong position to benefit from AI demand.Right now, the economics are compelling. AI data centers offer dramatically better returns on the same infrastructure. They can generate up to 25 ti ...

Core Viewpoint - CoreWeave is experiencing significant growth driven by high demand for its AI data center capacity, which is currently constrained by supply [1][2][10] Company Performance - CoreWeave's Q2 revenue surged to $1.2 billion from $395 million year-over-year, indicating a strong revenue pipeline [8] - The company's contractual backlog has increased by nearly $14 billion year-over-year, reflecting robust demand [1] - CoreWeave's stock has more than tripled since going public six months ago, despite some volatility [6] Contracts and Partnerships - Nvidia has signed a $6.3 billion contract with CoreWeave, ensuring long-term revenue growth by purchasing any unsold data center capacity through April 2032 [3][11] - CoreWeave has also secured an initial contract worth $11.9 billion from OpenAI, which was later increased by $4 billion [3] Capacity and Demand - CoreWeave currently operates 33 dedicated AI data centers with an active power capacity of 470 megawatts (MW) [8] - The company's contracted data center power capacity increased by 600 MW to 2.2 gigawatts (GW) in the previous quarter, but demand is expected to grow significantly [9][10] - McKinsey projects that data center capacity demand could quadruple from 55 GW in 2023 to 220 GW by 2030, indicating a potential long-term capacity constraint for CoreWeave [10] Future Outlook - The AI cloud infrastructure market presents a substantial growth opportunity for CoreWeave, with potential revenue reaching $25.6 billion by 2030 if it maintains a 20% annual growth rate [14] - CoreWeave's current valuation at 16 times sales is considered reasonable given its growth prospects [15]