Data center trade is sent careening off the rails by DeepSeek

Chip stocks lifted by Arm’s barn-burner revenue projection hike, Meta deal

Chip stocks rose early after chip design firm Arm Holdings announced a massive upgrade to its long-term forecasts for sales at an investor event Tuesday evening, following earlier news that it’s partnering with Meta to create “a new class of data center chips” — the company projected the new chip alone will generate $15 billion in annual revenue by 2031.

Nvidia, Intel, Advanced Micro Devices, ON Semiconductor, Microchip Technology, and NXP Semiconductors all got a bump from Arm’s rosy revisions to its outlook.

Why? Basically, the speech that Arm CEO Rene Haas delivered at its Arm Everywhere event in San Francisco supports the idea that “agentic AI is expanding the TAM for server CPUs which should drive server unit growth upside,” as HSBC semiconductor stock analyst Frank Lee put it in a note Wednesday.

In other words, the rise of AI will equate to a permanent step up in chip demand from AI data center servers — also known as an increase in the total addressable market, or TAM. So, you know, higher chip stock prices.

Arm says its in-house AI chip will generate billions in revenue

Nvidia, Intel, Advanced Micro Devices, ON Semiconductor, Microchip Technology, and NXP Semiconductors all got a bump from Arm’s rosy revisions to its outlook.

Why? Basically, the speech that Arm CEO Rene Haas delivered at its Arm Everywhere event in San Francisco supports the idea that “agentic AI is expanding the TAM for server CPUs which should drive server unit growth upside,” as HSBC semiconductor stock analyst Frank Lee put it in a note Wednesday.

In other words, the rise of AI will equate to a permanent step up in chip demand from AI data center servers — also known as an increase in the total addressable market, or TAM. So, you know, higher chip stock prices.

Sage D. Young17m

Cipher leaps on signing a 15-year data center campus lease with hyperscaler

Shares of Cipher Digital increased more than 11% on Wednesday morning amid news that the firm signed a new data center lease and secured a $200 million revolving credit facility.

This is its third data center campus lease, following two deals in November. This 15-year deal is with an “investment-grade Hyperscale tenant” that includes plans to develop a new high-performance computing (HPC) data center at one of its existing sites, according to the press release.

Cipher Digital also attained a $200 million revolving credit facility with an additional accordion option of up to $50 million, of which the total proceeds will be used to boost liquidity, support working capital, and fund growth initiatives.

“This transaction marks Cipher’s first syndicated revolving credit facility and represents a major step in the evolution of our capital structure,” CFO Greg Mumford said in a statement. “We believe this facility highlights the continued strength and maturation of our business, as well as the growing confidence in our long-term strategy from premier financial institutions.”

Last month, the firm rebranded from “Cipher Mining” to “Cipher Digital” to reflect the change of its focus from bitcoin mining to HPC data center development.

CIFR shares rise on new Hyperscaler agreement

Cipher Digital also attained a $200 million revolving credit facility with an additional accordion option of up to $50 million, of which the total proceeds will be used to boost liquidity, support working capital, and fund growth initiatives.

“This transaction marks Cipher’s first syndicated revolving credit facility and represents a major step in the evolution of our capital structure,” CFO Greg Mumford said in a statement. “We believe this facility highlights the continued strength and maturation of our business, as well as the growing confidence in our long-term strategy from premier financial institutions.”

Last month, the firm rebranded from “Cipher Mining” to “Cipher Digital” to reflect the change of its focus from bitcoin mining to HPC data center development.

Matt Phillips58m

EchoStar jumps on report SpaceX plans IPO filing as early as this week

EchoStar jumped early Wednesday on a fresh report about the supposedly imminent IPO filing from Tesla CEO Elon Musk’s commercial space behemoth, SpaceX.

The satellite stock, which was added to the S&P 500 on Monday, is in line to get a hefty chunk of SpaceX equity in exchange for the valuable spectrum rights it sold to Musk’s company.

EchoStar is set to collect roughly $20 billion on the deal, with as much as $11 billion to be paid in SpaceX stock.

The prospect of EchoStar potentially providing backdoor access to investing in SpaceX has attracted the attention of traders, and helps explain why the shares are up more than 300% over the last 12 months.

But as we’ve mentioned before, EchoStar doesn’t exactly own the shares yet, as the spectrum transactions remain pending. So, while the stock is up and the SpaceX IPO appears on track, as the old saying goes, don’t count your satellite spectrum for pre-public offering equity chickens before they’ve hatched.

SpaceX Aims to File for IPO as Soon as This Week

EchoStar is set to collect roughly $20 billion on the deal, with as much as $11 billion to be paid in SpaceX stock.

The prospect of EchoStar potentially providing backdoor access to investing in SpaceX has attracted the attention of traders, and helps explain why the shares are up more than 300% over the last 12 months.

But as we’ve mentioned before, EchoStar doesn’t exactly own the shares yet, as the spectrum transactions remain pending. So, while the stock is up and the SpaceX IPO appears on track, as the old saying goes, don’t count your satellite spectrum for pre-public offering equity chickens before they’ve hatched.

J. Edward Moreno3h

Arm says its in-house AI chip will generate billions in revenue

British semiconductor firm Arm rose more than 13% in premarket trading after it announced Tuesday evening that it would create a new AI chip in partnership with Meta, which its CEO says should lead to a boom in sales.

Speaking at an event in San Francisco, Arm CEO Rene Haas said the new chip alone is expected to generate $15 billion in annual revenue by 2031. Meanwhile, he said that the company expects intellectual property sales, currently its main revenue driver, to hit $10 billion by then.

In total, Arm projects it will hit $25 billion in annual sales in five years, compared to the $4.9 billion analysts expect it to report for its current fiscal year, which ends this month. It also expects to report $9 in earnings per share by then, compared to the $1.75 Wall Street is penciling in for FY2026.

Meta and Arm team up to build a new class of data center chips

Speaking at an event in San Francisco, Arm CEO Rene Haas said the new chip alone is expected to generate $15 billion in annual revenue by 2031. Meanwhile, he said that the company expects intellectual property sales, currently its main revenue driver, to hit $10 billion by then.

In total, Arm projects it will hit $25 billion in annual sales in five years, compared to the $4.9 billion analysts expect it to report for its current fiscal year, which ends this month. It also expects to report $9 in earnings per share by then, compared to the $1.75 Wall Street is penciling in for FY2026.