Hyperscale Cloud (IaaS / PaaS)

Tigress Financial Partners analyst Ivan Feinseth reiterated a Strong Buy rating on Alphabet and raised his price target to a Street-high $485 from $415, implying roughly 39.6% upside. The bullish thesis centers on Alphabet turning its massive AI investments into growth across Search, Cloud and Gemini, with Feinseth arguing AI Overviews and AI Mode can make Google more useful for complex, high-intent queries. Recent results support that argument: Alphabet's second-quarter revenue rose 24% from a year earlier to $119.8 billion, Search and Other revenue increased 17%, YouTube advertising grew 13%, and operating income climbed 30% to $40.77 billion. Google Cloud revenue surged 82% to $24.8 billion, operating income more than tripled to $8.8 billion, margins reached 35.6%, and its $514 billion backlog gives visibility into future enterprise demand. Gemini has reached 950 million monthly active users, more than 9 million monthly developers and roughly 22 billion API tokens processed per minute, and Feinseth sees monetization opportunities across subscriptions, APIs, enterprise software, agents and productivity products, though the risk remains that Alphabet must prove its enormous AI spending generates sufficient returns.

CleanSpark Inc.'s debut junk-bond offering for a data center tied to Meta Platforms Inc. drew orders of about $10 billion, more than four times the deal's size, according to people familiar with the matter. The five-year notes were set at almost $2.28 billion and launched at 98.5 cents on the dollar to yield 8.25%, roughly 1.75 percentage points above the average for BB rated firms tracked by Bloomberg. The fundraising, led by Morgan Stanley, will help finance construction of a data center in Sandersville, Georgia, that has been fully leased to Anviran LLC, a Meta subsidiary, under a $6.6 billion, 20-year contract. The facility is expected to begin operations in the fourth quarter of 2027, with Meta guaranteeing rent and operating expenses. Data center developers have now sold more than $3 billion of high-yield bonds so far this year, most backed by long-term leases with hyperscalers including Oracle Corp. and Amazon.com Inc.

Meta Platforms raised its full-year 2026 capital expenditure guidance to a range of $130 billion to $145 billion, including principal payments on finance leases, narrowed from a prior $125 billion to $145 billion range in its Q2 2026 report on July 29, 2026. The forward guidance nearly doubles Meta's full-year 2025 capex of $72.215 billion, and Q2 capital expenditures alone reached $31.1 billion, driven by servers, data centers, and network infrastructure. To fund the build, Meta ended Q2 with $90.3 billion in cash and marketable securities and $83.7 billion in debt, and announced a strategic venture with BlackRock to develop a one gigawatt data center in El Paso, Texas. CFO Susan Li said Meta is demand constrained today, and CEO Mark Zuckerberg said the company is receiving quite a number of offers at a meaningful premium over what we paid for the compute, framing direct compute sales as one leg of a portfolio that also includes APIs, business agents, productivity tools, and subscriptions. The strain is visible in the quarterly numbers: Q2 free cash flow was $784 million, down 91.31% year over year, and operating margin compressed to 31% from 43%, even as Q2 revenue reached $60.801 billion, up 27.96% year over year and above the $60.286 billion consensus, with advertising revenue of $59.4 billion, up 27%.

Amazon Web Services posted $42.23 billion in revenue, growing 37% year over year, the segment's fastest growth in 18 quarters, with a 39.4% operating margin and a $496 billion contracted backlog. Amazon's chips and AI businesses each eclipsed run rates of more than $25 billion in the second quarter, both growing at triple-digit percentages year over year, while 98% of Amazon's top 1,000 EC2 customers use Graviton and Anthropic and OpenAI have made multi-year, multi-gigawatt commitments to Trainium. Q2 operating income landed at $27.46 billion, up 43.2% year over year, and advertising is a $70 billion-plus trailing-twelve-month business growing 26%. Capex reached $54.21 billion in a single quarter, up 68.4% year over year, and free cash flow swung to negative $7.6 billion on a trailing-twelve-month basis, though most AI capacity is contracted for at least five-year terms. Since Amazon reported Q2 on July 30, 2026, AMZN moved from $230.08 to $251.19, while SPY went from $747.03 to $762.70 and QQQ went from $687.99 to $716.92. Andy Jassy said AWS could become a few hundred billion dollar revenue business and now believes it will be at least double that and very possibly a trillion dollar annual revenue business in time.

CoreWeave exited the second quarter of 2026 with $104.2 billion in revenue backlog, up 246% year over year, a figure that excludes more than $25 billion of net new customer commitments added in the early weeks of the third quarter. Management said more than half of the existing backlog was already tied to contracts where customer delivery had begun, and expects that proportion to exceed two-thirds of the second-quarter backlog by year-end. Quarterly revenues surged $2.6 billion, up 112% year over year, while adjusted operating income rose sequentially to $128 million, prompting the company to raise its 2026 revenue guidance to $12.4-$13.2 billion and adjusted operating income guidance to $960 million to $1.15 billion. CoreWeave also lifted its expected year-end annualized run-rate revenues to $18.5-$19.5 billion, citing the long-term nature and attractive margins of contracted backlog. Supporting that backlog is capital-intensive buildout: capex was $9.4 billion, construction in progress rose sequentially to $11.9 billion, operating expenses reached $2.6 billion including $165 million in stock-based compensation, and interest expense hit $640 million versus $267 million a year earlier, with interest expense expected to climb to $860-$940 million in the current quarter. At the end of the second quarter CoreWeave had 1.5 gigawatts of active power after adding nearly 500 megawatts during the quarter, plus 3.7 gigawatts of contracted power, which management said has since risen to 4.2 gigawatts toward a goal of at least 8 gigawatts by 2030, while competition intensifies from Nebius and Microsoft.

Arista Networks raised its full-year revenue outlook, citing continued robust demand for AI data center networking infrastructure. The company, which trades on the NYSE under ANET, said the higher guidance reflects management's expectation of a bigger top-line number for the current financial year. Management highlighted Arista's role in AI data center buildouts, and the company's AI data center focus sits within a much broader communications infrastructure footprint spanning data centers, AI clusters, campuses, and routing setups across the Americas, EMEA, and Asia-Pacific. Investors are watching whether upcoming quarters keep revenue above the US$3b mark and show continued strength in AI related switching and routing orders, along with how much of that business comes from a small group of hyperscale customers, since concentration there could still swing results either way. The update leaves intact existing risks around customer concentration and tougher competition from Cisco and NVIDIA.

Prysmian and Rio Tinto announced that electrical cables made with ELYSIS aluminum have been contracted for installation at an Amazon data center near Columbus, Ohio, marking the first known use of inert-anode-smelted, low-carbon aluminum in a data center. ELYSIS technology produces aluminum with no direct greenhouse gas emissions from the smelting process, emitting oxygen instead. The cables are manufactured and shipped from Prysmian's Sedalia, Missouri factory, with Wesco handling distribution. The companies had previously introduced ELYSIS aluminum in building wire in March 2026. All aluminum Rio Tinto supplied for the cables was produced in Quebec, Canada, using hydropower. Prysmian aims to become Net Zero by 2035 and targets 55% of revenues from sustainability-linked solutions by 2028.

Nvidia CEO Jensen Huang said demand for artificial intelligence computing is accelerating, describing the resulting investment cycle as a flywheel that is "really, really flying." Speaking with CNBC's Jim Cramer at Dreamforce in San Francisco, Huang estimated that a 1-gigawatt Nvidia AI factory costs about $50 billion to $60 billion to build but can generate roughly $50 billion in annual rental revenue, implying a return on invested capital of about one year. He said token generation has increased 25-fold in less than a year, with open models now accounting for nearly 70% of generated tokens, up from about 30%. Huang also said Nvidia Grace Blackwell systems now rent for about $16 per GPU hour, versus roughly $5 under some contracts signed a year ago, and he expects AI testing to become a third major category of infrastructure alongside training and inference, requiring additional data centers.

DigitalOcean Holdings secured a $725 million equipment finance facility on September 10 to fund the GPU and CPU capacity its AI-Native Cloud business needs, sending the stock up 7.45%. The facility, arranged with MUFG Bank as lead administrative and collateral agent alongside Axos Bank, BMO Bank and Wells Fargo as joint lead arrangers and PNC Bank as document agent, matures on September 10, 2030, and carries an accordion option for another $300 million. CFO Matt Steinfort described the financing as a way to align cash outflows with revenue at an attractive cost of capital, raised from a position of strength. The move follows second-quarter results reported on August 4, when DigitalOcean posted revenue growth of 29% year over year and raised its full-year outlook on accelerating AI demand. Remaining performance obligations reached $894 million in the second quarter, up twelvefold from a year earlier, while AI customer ARR grew 212% year over year and customers spending $500,000 or more grew their revenue contribution 160%. The expansion has come at a cost: operating income fell 18%, operating margin slipped to 10%, net income dropped 4% to $35 million, and adjusted free cash flow margin narrowed from 26% to 22%.

Yuanta Securities said AI Capex investment is likely to keep expanding over the next one to two years. Although elevated US bond yields will remain a drag, growth in Enterprise AI that is driving cloud and compute demand will offset it. Returns on GPU leasing investment remain high, with payback within 2.2 to 3.1 years, and hyperscalers have the financial strength to invest at least another 2 trillion US dollars in AI infrastructure. The Data Center industry in the APAC region is set to grow at a 25.2% CAGR in 2025 to 2030, the second fastest in the world after North America at 26.8% CAGR, and excluding China it can still grow at 22.9% CAGR. Thailand stands to benefit from its infrastructure readiness and geopolitical neutrality, while the Thai economy is starting to see positive effects through AI-related exports and continued growth in FDI. Thai stocks that Yuanta sees as likely to outperform the market under this theme are divided into the AI Export group, namely DELTA, HANA, SMT and EPG, and the AI and Data Center Deployment group, namely GULF, GUNKUL, AMATA, WHA, STECON, BBL and SCB, for a total of 11 stocks. Foreign companies that stand to benefit include NVDA19, GOOGL19, AMZN19, LITE80, MRVL80, BE80, JPMUS19 and GSUS06, for a total of 8 DRs.

Generac Holdings announced a long-term agreement to supply Amazon with industrial backup generators for its global data centers, with initial deliveries of about US$2.40 billion in 2027–2028 and total potential purchases up to US$8.00 billion. The deal also includes purchase-linked warrants for Amazon to buy Generac shares, tying the two companies together through equity incentives. The arrangement locks in critical power resilience for Amazon's expanding AI and cloud infrastructure, though it does not change the near-term catalyst of AWS execution or the risk around rising capital intensity and debt-funded infrastructure. Amazon's narrative projects US$1152.4 billion in revenue and US$158.3 billion in earnings by 2029, requiring 14.1% yearly revenue growth and a US$23.0 billion earnings increase from US$135.3 billion today, with a fair value estimate of US$327.00 implying 30% upside.

Nebius Group has raised prices for its Nvidia GPU and AMD CPU cloud services, citing surging enterprise interest in large-scale AI training and inference workloads. The higher rates apply to both Nvidia GPU instances and AMD CPU based compute bundles across the company's AI focused cloud offerings, with the price change taking effect on October 1. The company said the move reflects strong AI workloads filling its infrastructure and tight supply of high end chips such as Nvidia H100 and B300, and that steeper rates on GPUs and AMD EPYC Genoa CPUs help align customer bills with the cost of scarce compute capacity and large data center buildouts. Nebius Group builds full stack infrastructure for AI developers and enterprises across the US, the UK, and other markets, so the pricing directly shapes what customers pay to train and run models at scale. Investors will watch upcoming quarterly updates for the AI cloud revenue mix and Palantir related usage, since stable or growing GPU utilization at the new rates would show the higher pricing is being absorbed rather than pushing workloads to rival providers.

Oracle expanded its fiscal-2026 restructuring plan to roughly $2.8 billion as the company pours more capital into AI infrastructure, Reuters reported. The shares rallied about 5.4% to $150.90 Thursday morning, based on the latest market snapshot, versus the earlier $148.83 quote. That $2.8 billion restructuring bill works out to roughly 14.5% of Oracle's latest $19.35 billion in quarterly revenue and covers severance, contract exits and other restructuring costs, while free cash flow is running at approximately negative $5.4 billion. Remaining performance obligations have climbed to $664 billion after Oracle signed more than $30 billion of additional AI-cloud contracts, with roughly half of that backlog expected to turn into revenue within 36 months. Management says customer prepayments and customer-supplied chips can soften the capital burden, but the real test is execution.

Qualcomm has given Amazon an equity-linked incentive to deepen their AI-infrastructure partnership, with Amazon able to eventually purchase as much as $60 billion of Qualcomm data-center products while purchase-linked warrants could hand Amazon roughly $4 billion of Qualcomm shares at $161.26 each. Qualcomm shares gained approximately 2.1% to $188.64 Thursday, a level 7.37% above the stock's $175.69 GF Value. The warrant value represents roughly 6.7% of the maximum purchasing framework, directly tying Amazon's buying activity to Qualcomm's equity story. The two companies are also working together on custom AI inference silicon and optical connectivity capable of reaching 1.6 terabits per second. No minimum purchase commitment, delivery timetable or margin profile has been disclosed.

Alphabet opened its Google Home smart-home ecosystem to rival AI agents, turning the platform into a broader distribution channel rather than a Gemini-only service. The company's Home MCP server now lets compatible third-party agents such as Claude and OpenClaw inspect connected devices, track their status, execute commands and work with historical household events. The service sits behind Google's Premium Advanced plan, priced at $20 per month or $200 annually, and also requires a Google Cloud project. Google has placed limits around higher-risk actions such as unlocking doors, though opening the system to outside agents introduces a new security variable. Alphabet shares gained approximately 1.5% to $347.91 Thursday, with the stock trading 35.37% above its GF Value estimate of $257.01.

Microsoft pushed another high-security financial workload deeper into Azure Thursday with a managed payment-security service built for banks and payment processors, sending the shares up approximately 1.6% to $498.17. The offering, Azure Payment HSM v2, combines Marvell's LiquidSecurity hardware with Utimaco's Atalla payment module, giving financial institutions a cloud-based way to protect payment keys, encryption and transaction security without giving up the controls demanded by regulated environments. The public preview is available in West US and Western Europe, and Microsoft did not disclose pricing, customer contracts or expected revenue, so the near-term financial impact remains difficult to quantify. The bigger story is where Microsoft keeps pushing Azure: Microsoft Cloud generated $59.3 billion, or roughly 65.9% of the company's latest quarterly revenue, and payment security opens another sticky workload where compliance requirements can make switching painful. The preview alone will not move Microsoft's financial needle, but successful production adoption could deepen Azure's grip on highly regulated customers and create another layer of recurring cloud spending.

Oracle shares trade at $147.17 even after a fiscal Q1 2027 earnings report that saw revenue hit $19.345 billion, up 29.6% year over year, non-GAAP EPS of $1.92 against a $1.74 estimate, and cloud infrastructure growth of 121%. Remaining performance obligations swelled to $664 billion, with more than $30 billion in new AI contracts booked in the quarter alone, yet the stock has fallen 8.95% over the past week as the market focuses on negative $5.396 billion quarterly free cash flow and a $28.499 billion capex bill. 24/7 Wall St. maintains a buy rating and a $214.69 price target, implying roughly 50% upside, with 90% confidence, citing a forward P/E of 17 that is cheaper than Microsoft at 26 and Alphabet at 22. The bear case centers on FY26 free cash flow of negative $23.686 billion, interest expense up 55% to $1.4 billion, and full-year FY27 capex guidance of $90 to $95 billion, which could force another equity raise beyond the completed $20 billion ATM program. Half of the $664 billion RPO is expected to convert to revenue over the next 36 months, and management guided full fiscal 2027 revenue to at least $90 billion with non-GAAP EPS of $8.10.

Nvidia CEO Jensen Huang confirmed at a Scotland tech gathering that the company's chip sales in 2027 are projected to roughly double from 2026, echoing management's August 26, 2026 earnings call guidance for about 70% revenue growth in fiscal 2028. The doubling is being driven by the Vera Rubin platform, which entered full production alongside continued Blackwell deployment and is expected to be the fastest product ramp in Nvidia's history, with per-gigawatt revenue opportunity rising to roughly $40 billion from $25 billion on Blackwell. Nvidia's supply obligations swelled to $279.0 billion, largely tied to memory procurement for Vera Rubin, while guarantee obligations for AI cloud partners are capped at $108.5 billion and financing platforms with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR are expected to mobilize over $500 billion of third-party capital for AI infrastructure. Sovereign and enterprise AI is growing 100% a year, with sovereign AI revenue up 35% sequentially and more than tripling year over year, and neocloud partners expected to exit the year with eight gigawatts of installed capacity versus roughly three gigawatts at the end of 2025. Consensus EPS for the fiscal year ending January 2028 has climbed from $12.67 ninety days ago to $15.57 today, with 39 upward revisions in the past 30 days and zero cuts, on revenue now pegged at roughly $678 billion.

Amazon chief Andy Jassy said on the company's recent earnings call that he now believes Amazon Web Services could become at least a few hundred billion-dollar revenue business, and very possibly a trillion-dollar annual revenue business in time. The prediction stands out against AWS' current $169 billion annual revenue run rate, and against the $58 million annual revenue run rate AWS reached three years after launch. AWS' AI revenue run rate, roughly three years into the AI boom, now totals more than $25 billion. Amazon said it plans to spend $220 billion this year, up from an earlier forecast of $200 billion, and that even at that level it won't be able to fulfill all of the demand this year and next year. The article was originally published by The Motley Fool.

Everpure lifted its fiscal 2027 revenue guidance to $5.03-$5.07 billion from a prior range of $4.41-$4.51 billion, with the $5.05 billion midpoint matching the Zacks Consensus Estimate. The company also raised its expected adjusted operating income growth rate to 48-51% from 29-36%. On Aug. 10, 2026, Everpure announced a design win and signed a supply agreement with the second top-five hyperscaler for its hyperscale products, a deal expected to generate substantial revenues in fiscal 2028 and beyond; hyperscale product deployments carry margins of 75-85%. In the first quarter of fiscal 2027, the company added 275 new customers and 223 logos in its commercial business, with Fortune 500 penetration at 64%, and Evergreen//One's total contract value reached a $1-billion run rate for fiscal 2027. Everpure stock has gained 34.3% over the past six months, outpacing the industry's 11.2% decline, and carries a Zacks Rank #3 (Hold).

Marvell Technology's data center business reached a record $2.17 billion in the second quarter of fiscal 2027, up 46% year over year and 18% sequentially, and accounted for 79% of total company revenues. The data center end market made up 74% of Marvell's fiscal 2026 revenues, and the company expects data center revenues to grow approximately 60% in fiscal 2027. Marvell reported strong demand for 800G optical DSPs while its 1.6T products ramp rapidly, and scale-out switching is expected to more than double in fiscal 2027 on broader adoption of its 51.2T switch products. The company expects its custom business to accelerate in the second half of fiscal 2027 and more than double year over year in fiscal 2028, driven by XPU and XPU-attach solutions, with an expanded hyperscaler agreement covering AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute. Marvell also expanded its position in next-generation AI infrastructure through its relationship with NVIDIA, including NVLink Fusion, scale-up switching and silicon photonics, and introduced products such as the 102.4 Tbps Teralynx T100 switch. Marvell shares have gained 170.3% year to date, and the Zacks Consensus Estimate for fiscal 2027 earnings suggests year-over-year growth of 48%.