NeoClouds Biz Model. Neoclouds

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NeoClouds Biz Model.

Neoclouds like NBIS and CRWV buys AI chips and rents out to hyperscalers like OpenAI and Anthropic. Their claimed forward revenues seems positive.

But I see problems with this biz model.

Firstly, they borrow huge amount of cash to buy the chips.

Secondly, cost of capital is rising.

Thirdly, the chips they are bought are current or even past models. And technology is fast evolving with faster and better chips being developed every day.

Fourthly, the forward revenue, or order books, are mostly not guaranteed. The customers may not go ahead with the purchases.

This Is a bit like buying a piece of land, engaging a contractor to build a shopping centre, based on the promise that the entertainment operator will come and open a complex at your property when built.

But what happens when a Johore Iskander Forest City event happens?

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NMKOH
·00:27
Their stock price has plummeted last Friday. Today hopefully recovering but whether they can generate profits is yet to be seen.
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DQS4288
·01:08
Thanks for sharing. Very informative
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Urgent
·11-02 22:17
Nice post
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TigermomB
·11-02 21:48
[Like]
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Blinkfans
·11-02 20:16
Up up
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Their claimed forward revenues seems positive.&nbsp;\nBut I see problems with this biz model.\nFirstly, they borrow huge amount of cash to buy the chips.&nbsp;\nSecondly, cost of capital is rising.&nbsp;\nThirdly, the chips they are bought are current or even past models. And technology is fast evolving with faster and better chips being developed every day.&nbsp;\nFourthly, the forward revenue, or order books, are mostly not guaranteed. The customers may not go ahead with the purchases.&nbsp;\nThis Is a bit like buying a piece of land, engaging a contractor to build a shopping centre, based on the promise that the entertainment operator will come and open a complex at your property when built.&nbsp;\nBut what happens when a Johore Iskander Forest City event happens?&nbsp;</body></html>","htmlText":"<html><head></head><body>NeoClouds Biz Model.\nNeoclouds like NBIS and CRWV buys AI chips and rents out to hyperscalers like OpenAI and Anthropic. Their claimed forward revenues seems positive.&nbsp;\nBut I see problems with this biz model.\nFirstly, they borrow huge amount of cash to buy the chips.&nbsp;\nSecondly, cost of capital is rising.&nbsp;\nThirdly, the chips they are bought are current or even past models. And technology is fast evolving with faster and better chips being developed every day.&nbsp;\nFourthly, the forward revenue, or order books, are mostly not guaranteed. The customers may not go ahead with the purchases.&nbsp;\nThis Is a bit like buying a piece of land, engaging a contractor to build a shopping centre, based on the promise that the entertainment operator will come and open a complex at your property when built.&nbsp;\nBut what happens when a Johore Iskander Forest City event happens?&nbsp;</body></html>","text":"NeoClouds Biz Model. Neoclouds like NBIS and CRWV buys AI chips and rents out to hyperscalers like OpenAI and Anthropic. Their claimed forward revenues seems positive. 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Today hopefully recovering but whether they can generate profits is yet to be seen.","text":"Their stock price has plummeted last Friday. Today hopefully recovering but whether they can generate profits is yet to be seen.","html":"Their stock price has plummeted last Friday. Today hopefully recovering but whether they can generate profits is yet to be seen.","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0,"disclaimerType":0},{"id":625048071279216,"commentId":"625048071279216","gmtCreate":1793639288824,"gmtModify":1793639294004,"authorId":4092735915653010,"author":{"id":4092735915653010,"idStr":"4092735915653010","authorId":4092735915653010,"name":"DQS4288","avatar":"https://static.tigerbbs.com/c74327fb4d0ef7db3f6657b6a1c4b89f","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-3","templateUuid":"1026c425416b44e0aac28c11a0848493","name":" Tiger Idol","description":"Join the tiger community for 1500 days","bigImgUrl":"https://static.tigerbbs.com/8b40ae7da5bf081a1c84df14bf9e6367","smallImgUrl":"https://static.tigerbbs.com/f160eceddd7c284a8e1136557615cfad","grayImgUrl":"https://static.tigerbbs.com/11792805c468334a9b31c39f95a41c6a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.10.01","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001,"isScarce":0,"effectEnabled":0,"wearingSort":0},"crmLevel":12,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[{"categoryType":1001,"badgeId":"1026c425416b44e0aac28c11a0848493-3","name":" Tiger Idol","description":"Join the tiger community for 1500 days","smallImgUrl":"https://static.tigerbbs.com/f160eceddd7c284a8e1136557615cfad","bigImgUrl":"https://static.tigerbbs.com/8b40ae7da5bf081a1c84df14bf9e6367","isScarce":0,"effectEnabled":0,"redirectLinkEnabled":0,"redirectLinkValidityFrom":0,"redirectLinkValidityTo":9223372036854776000,"sortingWeight":0,"wearable":0}]},"repliedAuthorId":0,"objectId":624521213227760,"objectIdStr":"624521213227760","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"Thanks for sharing. 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