Data Centres: A Rotation Day
Why money is leaving $NBIS and $CRWV for the Bitcoin miners
Today was an interesting day that started with a major AWS outage — and it might have set the tone for the whole session. Investors rotated out of the AI Stack data-center names like CRWV 0.00%↑ , NBIS 0.00%↑ , and ORCL 0.00%↑ , while Bitcoin miners such as $CIFR, MARA 0.00%↑ , and GLXY 0.00%↑ moved higher. It’s hard to say what triggered this exact rotation — maybe investors just got tired of the sideways chop and started chasing stronger momentum stories.
$CRWV is likely being pushed down ahead of the CORZ 0.00%↑ deal. Around $ORCL, there’s some strange media noise, with one outlet constantly casting doubts on the company’s data. Still, Oracle’s guidance has consistently held up through earnings, and the scale effect will eventually play in their favor. As for $NBIS, it’s simply consolidating after a strong run.
$NBIS and $CRWV have already rallied on their association with AI cloud infrastructure and contracts with $MSFT and other hyperscalers — meaning the future is already priced in. When investors see growth momentum slowing or start questioning margins and competition, they rotate capital into names with the same infrastructure story but lower multiples.
Bitcoin miners are building new data centers with GPU and ASIC capacity designed specifically for AI rendering and HPC workloads. After the Aligned deal, funds started recognizing that miners are becoming the part of the AI infrastructure build-out.
It’s worth remembering that no stock can rise forever. A pullback in what looks like an “evergreen” name isn’t a tragedy. IREN 0.00%↑ dropped below $60, but I see no warning signs — the market’s clearly waiting for a major deal, and the stock has already had a big run. Gradual consolidation and steady growth are far healthier than vertical spikes followed by sharp declines, which is exactly what we’re seeing now with the quantum names.
Rare-earth stocks USAR 0.00%↑ NB 0.00%↑ were strong today after Trump’s latest comments on China, and that theme isn’t going away, even if they reach some sort of agreement.
A heavyweight like CLF 0.00%↑ is now starting rare earth division; those guys don’t move without serious conviction. I recently added a new rare-earth position that hasn’t hit the hype cycle yet — I’ll share more about it with paid subscribers if it doesn’t drop by then 😀
Many names from the post below also rallied today — even ABAT 0.00%↑ jumped 40% after the CEO bought $700k worth of shares.
Big Tech was strong across the board too, with AAPL 0.00%↑ and META 0.00%↑ gaining as investors started positioning ahead of earnings. Even AMZN 0.00%↑ recovered by the end of the session after fixing the outage but the global AWS incident is a reminder that even the biggest clouds are running at their limits, and the world simply doesn’t have enough data-center capacity to handle the next wave of AI demand.
That’s why both $NBIS and $IREN remain solid long-term stories.And remember — it’s easy to be a bull when a stock is going up; it’s much harder to stay one when it’s going down.
This publication is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Readers are solely responsible for their own investment decisions. The author may hold positions in the securities mentioned.
Great context on the rotation dynamics. I think you're spot on that NBIS consolidation is healthy after such a strong run - valuations needed to digest the Microsoft deal news. The miner pivot to AI infrastructure is genuinly fascinating, especially post-Aligned, but I'd argue the value propositions are quite different. NBIS has proven hyperscaler relationships and networking IP, while miners are converting stranded energy assets into compute. Both can win, just different risk profiles. The AWS outage actually reinforces the case for diversified cloud capacity, which plays into NBIS's decentralized infrastructure thesis perfectly.