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Galaxy Digital rises after Citi upgrades it to Buy and raises its target to $28, citing AI data-center growth and Helios II potential.
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The Nasdaq 100 had its worst day since 2020, but credit barely moved. S&P Global's Gavan Nolan tells Benzinga why three stocks stand out.
The Nasdaq dropped 5.5% following midterm election results, as investors feared political backlash against data center construction, particularly in Texas where the governor-elect proposed a temporary moratorium. Semiconductor stocks collapsed, with the VanEck Semiconductor ETF losing 11.2%. However, analysts argue this reaction is likely an overreaction, as AI demand remains strong and any slowdown would likely shift construction abroad rather than eliminate growth.
Following the midterm elections, certain stocks are positioned to benefit or suffer based on potential policy shifts. Retailers like Amazon, Shopify, and e.l.f. Beauty could gain from tariff rollbacks, while neoclouds like Space Exploration Technologies and other data center companies face headwinds from tougher permitting. Palantir Technologies may see slower government growth depending on administrative changes.
Core Scientific said on Thursday it plans to abandon Bitcoin mining entirely by year-end and reposition itself as a pure-play AI firm.
Nebius emerges as the superior AI neocloud investment over CoreWeave for a 3-year horizon. CoreWeave faces financial strain with a 0.46 current ratio and corporate bonds yielding 15% APR, requiring debt refinancing. Nebius boasts a stronger 4.03 current ratio and finances 50-60% of capex through customer prepayments. While CoreWeave currently generates more revenue ($2.6B vs $582.3M in Q2), Nebius's 454% growth rate versus CoreWeave's 112% suggests it will close the gap. Nebius's available capacity positions it better to capitalize on rising megawatt prices ($40-50M per megawatt for short-term deals), while CoreWeave's capacity is locked into long-term contracts.
Nvidia, Micron and eight other AI stocks fell below their 200-day moving average this week as the midterm vote hit AI spending bets.