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A weekend response from TeraWulf‘s (NASDAQ:WULF) chief executive is lifting the former Bitcoin miners now racing to build AI data centers, with TeraWulf shares leading the charge.
Applied Digital just posted the strongest quarter in its history, yet the stock cratered more than 30% immediately after.
Shares of neoclouds that offer AI infrastructure for rent are falling after a post by Elon Musk added fuel to worries about their financial health.
Elon Musk says debt markets have nearly shut off funding for AI data centers and predicts a wave of half-built facilities with nowhere to go.
Applied Digital's Wes Cummins and Jason Zhang bought roughly $6.7 million in shares as the data-center stock slumped.
Dell's record $95B AI server backlog and lower valuation set it apart from Applied Digital, whose $36B contracted pipeline comes with mounting financial risks.
Short sellers piled into AI data center stocks and walked away with billions in October gains, but a $76 billion funding gap and bond yields near 15% suggest the pain for these companies may have only just started.
The facility will use power from a nearby wind farm for some of its electricity. Compounding this positive development, an analyst reinstated coverage of the stock with a buy recommendation.