AI Boom is around the Cliff?
Hello everyone! Today i want to share some ai trading ideas with you!
1
Semiconductors just suffered its second-worst day since 1994 (behind only March 16, 2020) and selloffs this extreme have often occurred near major market bottoms.
That's the key difference today since the selling is driven by fears that capex growth peaks in 2027 and post-election data center concerns even as this earnings cycle shows demand still exceeding supply. $NVIDIA(NVDA)$$Advanced Micro Devices(AMD)$ $Philadelphia Semiconductor Index(SOX)$
2
$Amazon.com(AMZN)$ is planning a data center next to $Vistra Energy Corp.(VST)$ Comanche Peak nuclear plant in Texas that would draw power directly from facility with backup generation available when the grid needs it.
What’s interesting is that Vistra could monetize AI demand through long-term contracts without waiting years for entirely new power plants to be built.
3
$IREN Ltd(IREN)$ just signed a 5-year deal at ~$22M per MW with the customer prepaying 90% of GPU costs compared with 20% on its $Microsoft(MSFT)$ tranches.
If $CoreWeave, Inc.(CRWV)$ and $NEBIUS(NBIS)$ can secure similar terms then it could take a lot of pressure off expensive debt financing that's been weighing on neoclouds.
4
$Applied Optoelectronics(AAOI)$ is now down more than 80% over past six months and management expects its 2027 U.S. capacity expansion to take longer than planned.
CFO Stefan Murry pointed to a “longer than expected time to obtain necessary electrical power” as one of reasons.
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