Applied Digital has transitioned from cryptocurrency mining to operating AI-focused data centers, securing $36 billion in long-term lease contracts over 15 years. The company generates $2 billion in annualized net operating income and is rapidly expanding its capacity through 2028. A potential $5 billion investment from Macquarie and a 97% stake in ChronoScale support growth and asset value, though challenges in monetizing these assets remain. The stock is rated Hold due to visible cash flows but carries execution risks and sensitivity to hyperscaler capital expenditures.
TeraWulf and Applied Digital shares jumped 6% and 5% respectively after NVIDIA reported record revenue and strong guidance for AI data center growth. NVIDIA's Q2 revenue of $96.2 billion beat expectations, with data center revenue up 117%, signaling ...
A new Neocloud ETF launched on August 6, 2026, focuses exclusively on companies renting AI compute infrastructure to hyperscalers, offering a more concentrated AI investment than the broad Invesco QQQ Trust (QQQ). While QQQ includes large tech firms ...
