Susana SchwartzWill today make up for yesterday's $2.5T losses?
Some AI stocks are bouncing back this morning after yesterday’s historic $2.5 trillion market plunge. So far, Nvidia is up about 4.5%, AMD 6.9%, Palantir 5.9%, and Broadcom up 4.4%.
Since we looked yesterday at neoclouds double-digit tumbles, it makes sense to look at what happened after IREN’s Q1 FY27 late-afternoon earnings call yesterday. Its quarterly AI cloud revenue tripled to $200 million, and this morning the company’s stock was up a whopping 22%. Whether Microsoft’s request for a network redesign and tightening oversight will impact IREN’s $4 billion in annualized recurring revenue remains to be seen.
Microsoft rivals, Alphabet, Meta, and Amazon, saw slight increases this morning, while Microsoft had a slight decrease. For now, most hyperscalers are expected to continue doubling-down on commitments to lease massive amounts of GPU compute capacity in 2027. For example, Alphabet’s Project Braid with Blackstone aims to build a $5 billion AI cloud company (N1) that will operate as an independent neocloud, and Anthropic continues with Lambda, Nscale, and Fluidstack for compute. Additionally, they will continue to focus on custom ASIC chips, with shipments projected to grow 44.6% in 2026.
Longer term, analysts anticipate that in states where pro-moratorium or anti-data-center political candidates won, roughly 30 GWs of planned capacity could be paused by 2028 – approximately 30% of data center capacity planned for that year..
But, for 2027, data center projects are considered to be “locked in,” with approximately $1.4 trillion to $1.6 trillion in expansions mapped out. They cannot be easily canceled or slowed by the results of this week’s midterm results.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Qualcomm earnings call: Qualcomm CEO Cristiano Amon expects data center business to generate $650 million in revenue in the December quarter, as the company moves into shipments of custom silicon and connectivity.
Qualcomm-SpaceX partnership: Qualcomm’s deal to supply radio technology for Starlink Mobile’s terrestrial network strengthens SpaceX’s ambitions to challenge the U.S. mobile incumbents with a disruptive, vertically integrated operator forming.
AI Today: What You Need to Know
Equinix says size will matter : Equinix APAC president Cyrus Adaggra spoke onCNBCs Squawk Box Asia, stating that smaller facilities of 100 MWs or less may become the focus if there’s increased scrutiny of U.S. data center construction.
Vertiv-Infeneon deal: Vertiv and Infineon have signed a 3-year power semiconductor agreement to strengthen supply continuity to help scale demand for critical digital infrastructure and to support Vertiv’s multi-supplier strategy.
Coherent photonics on the rise: Coherent reported Q1 FY2027 revenue of $2.37 billion (for the period ended September 30, 2026), marking a 50% increase YOY, with data centers and communications accounting for 82% of total revenues.
Chemours cooling innovation: Chemours has released a new range of fluids for two-phase direct-to-chip and immersion cooling systems for data centers, with Faizeon dielectric fluids for efficient options that evolve with architectures.
Hua Hong’s silicon photonics: China’s Hua Hong Grace Semiconductor is aggressively expanding into silicon photonics, with its CEO Bai Peng wanting to participate in “all silicon-based devices [inside optical modules].”
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