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Oct 6 • 11 tweets • 6 min read
Revenues of AI infrastructure companies are soaring.
Morgan Stanley estimates that capital expenditures on AI will exceed $3 trillion in the next three years.
Here are our top 10 AI infrastructure stock picks: 🧵
1. $NBIS
- Cloud company partnering with $NVDA.
- It has just signed $17 billion deal with $MSFT.
- Targeting 1GW capacity by the end of the year.
Revenues are growing at a triple-digit annual rate, and it's rapidly growing its capacity.
At the current market rates, it can generate $10 billion ARR with 1GW capacity. If it can grow this capacity to just 2GW in the next 5 years, it can generate $20 billion ARR.
Despite this potential, it's currently valued at just $32 billion.2. $IREN
- Pivoting from Bitcoin mining to AI compute.
- Targeting 750MW capacity by the end of this year.
- It is planning to add another 2GW capacity next year.
Iren has expertise in owning and operating data centers due to its legacy Bitcoin mining business.
They also have a cloud platform, but it hasn't been preferred much by AI companies due to its shortcomings, like unable to provide bare-metal compute.
It's actively investing to achieve bare-metal status, and it's just a matter of time now.
