The spending on AI infrastructure by technology giants is accelerating, and the golden window for independent computing operators may have opened.

Written by: Zhao Ying, Wall Street Insights

A new round of computing power arms race is reshaping the cloud computing landscape, with the "new cloud" (neocloud) track welcoming a wave of catalysts.

Overnight, the stock prices of IREN and Hut 8 both surged significantly, rising over 19% and 10% respectively, as both companies announced large AI cloud computing contracts with tech giants. Meanwhile, Nvidia disclosed through SEC filings that it holds a 9.3% beneficial ownership in Nebius, boosting market sentiment, and Nebius followed suit in after-hours trading. The combination of these three pieces of news has greatly heightened the popularity of the entire neocloud sector.

The core logic of this wave of market activity lies in the ongoing expansion of demand for GPU computing power from cutting-edge AI models, AI agents, and robotics companies, while the construction pace of data centers by hyperscale cloud service providers is struggling to keep up. This has opened up a vast market space for independent neocloud operators.

IREN: $2.8 billion contract secured, annual target raised

IREN announced on Monday that it has signed new multi-year cloud computing contracts with several AI developers, with a total contract value of $2.8 billion. Boosted by this news, IREN's stock price soared by as much as 16% in the morning, ultimately increasing by over 19% by the end of the day.

The company also raised its annual targets, increasing the AI cloud services annualized operating revenue target from the previous $3.7 billion to over $4 billion, of which 85% is supported by signed contracts. Reports indicate that IREN's clients include Microsoft, Nvidia, Perplexity, and Figure AI. The company plans to expand its data center capacity from the current 480 megawatts to 1.2 gigawatts by 2027.

IREN was formerly known as the Australian bitcoin mining company Iris Energy, which later transformed into AI computing, building self-sustaining data centers powered by renewable energy, making it one of the representative companies in this neocloud wave.

Hut 8: Texas campus fully leased, 15-year contract worth $9.8 billion

Hut 8 also announced the full leasing of its Beacon Point data center campus in Texas, signing a 15-year lease worth $9.8 billion with an unnamed high-investment-grade company. The tenant has doubled its contracted computing power capacity to 704 megawatts.

It is reported that including extension options, the potential total value of the aforementioned agreement could exceed $50 billion, with a total contract value of $19.6 billion over 15 years.

Hut 8 also originated from the Canadian bitcoin mining sector, and its stock price has increased over four times in the past 12 months, though there has been a recent pullback—since the peak in early June, it has dropped by over 30%. B. Riley analyst Nick Giles noted in a research report: "Given that we expect the stock price to quickly return to previous highs following this announcement, we recommend buying aggressively."

Nebius: Nvidia holds 9.3%, institutions optimistic about $30 billion revenue by 2030

Nebius's catalyst comes from its equity aspect. Nvidia disclosed through SEC filings that it holds approximately 9.3% beneficial ownership in Nebius, consisting of 1.19 million existing shares and around 21 million prefunded warrants, corresponding to a scale of about $2 billion.

Although this shareholding relationship is not new information, the formal disclosure still provided a significant boost to market sentiment, and Nebius followed suit in after-hours trading. Wolfe Research predicts that Nebius's revenue will reach $30 billion by 2030. The company has previously recorded a year-on-year revenue growth rate of 684%, and has long-term agreements with Meta and Microsoft, with a backlog of contracts worth several billion dollars, securing over 3.5 gigawatts of power capacity.

Driven by the overall sector sentiment, neocloud leader CoreWeave also saw an increase of about 3.5% on Monday, while Nebius increased by approximately 2.6% during the day.

Track logic: Power, GPU, and customers, who runs faster wins

The concentrated explosion of three companies reflects the current core competitive elements of the neocloud track: power resources, GPU supply, and customer locking ability. The structural bottlenecks in data center construction by hyperscale cloud service providers are creating sustained bargaining space for independent operators who can quickly integrate these resources.

For investors, the significance of this market wave lies in the fact that the spending on AI infrastructure by tech giants is accelerating towards third-party neocloud operators, and Nvidia's direct investment in Nebius further strengthens market confidence in the long-term value of this track.