Late Stage Capitalism
Physician, Long-Term Stock Investor with 30 Years of Experience
Big Digital looks significantly undervalued and should pop on deals. Per Big Digital, its Texas Load House site in Hood County has 17 MW live with a near-term path to 111 MW, subject to ERCOT. Tensor IQ is the offtake on that 17 MW for 7,748 Nvidia B300s targeted for Q2 2027, subject to definitive agreements, with indicative 15-year power-lease revenue of about $546 million at full utilization. x.com
Applied Digital's AI and high-performance computing data centers could expand substantially as demand grows. It is a high-risk upside bet: construction costs, financing needs and dependence on large customers could impede that expansion. x.com
Semiconductors could capture scarce spot compute's value if its forward curve holds. Compute trades in deep contango, while chip stocks price in little of that value; near-term moves are unpredictable. That makes the sector very bullish. The earlier lab-funding risk looks less acute: Anthropic should hold nearly $200B cash after its IPO and is operating-cash-flow profitable. Even with 2029 capex cuts, chips look cheap if future buyers do not default. x.com x.com x.com x.com x.com
Galaxy Digital may be the market's most undervalued stock because its $6.5B value overlooks Helios I's contracted rent and $6.6B in cash, Treasuries, digital assets and investments. Its first full Helios I Phase I quarter delivered $69M of data-center adjusted EBITDA. Novogratz said Galaxy rejected a Helios II lease as power tightened; a higher-priced tenant is still prospective. Galaxy expects $800-850M in annualized leasing by end-2027, and the stock should quickly reach $30+ by year-end. … Show more
Financing announcements point to more accelerator demand, supporting semiconductors. About $200bn in announced Meta, Anthropic/Broadcom and SpaceX/Nvidia financing likely drives $400bn in XPU purchases. Data centers burn cash until lit, then cash flow 20-40% annually; AI spend rising from 0.1% to 0.5-1% of current payroll could balance the buildout if agents replace roles. Sustainable token demand is the bet, but smaller local models are the bigger risk, though not an immediate concern. x.com … Show more
Dycom looks compelling because its infrastructure backlog and operating execution position it to benefit from AI's demand for power, fiber, and data centers. Its backlog has grown to $12.2 billion from $8 billion a year ago, Building Systems EBITDA margins exceed 20%, and Power Solutions is running 30% ahead of acquisition expectations. The long-term growth opportunity may be underappreciated as the market focuses on near-term margin pressure. x.com
Demand for AI capacity without Magnificent Seven lock-in underpins the long-term case for Cipher Digital. The stock also looks unusually oversold in the short term, at a level not seen since 2022. x.com
Applied Digital's data-center buildout is paying off, with $73B of potential contracted revenue now signed with investment-grade hyperscalers. Earlier, with ground broken on Polaris Forge 2 and another deal in the works, the company already had a clear path to $1B+ in annual recurring revenue. x.com
Strong AI demand and hyperscaler spending make the selloff a mid-cycle correction despite neocloud financing stress. Widening CCC spreads expose leveraged firms to higher borrowing costs; US competition with China supports AI buildout. The base case is a bottom in roughly 5-7 days, then stabilization and eventually a broader reversal, though some projects may fail and valuations compress. IREN, Cipher, Nebius, Applied Digital, Micron, AMD, ASML and Intel are worth gradually accumulating. x.com
AI demand could drive a big run in Broadcom, IREN, Oracle, Qualcomm, Nokia and Vistra. IREN's 2 GW of uncontracted power gives it massive upside potential; Vistra's roughly 3.8 GW of Meta and Amazon agreements position it for data-center power demand. Broadcom supplies custom AI chips and networking; Oracle has $664B in backlog and a $300B OpenAI deal; Qualcomm is one of tech's most undervalued names with CPU, physical-AI and data-center exposure; Nokia is essential to AI networking. x.com x.com … Show more
Blackstone Data Centers brings an institutional-grade data center platform to public markets just as AI-driven infrastructure demand accelerates globally. The listing is notable because Blackstone has spent years taking discounted REITs private, including American Campus Communities and PS Business Parks, when buying whole companies was cheaper than buying their properties one by one. x.com x.com
