Daily Alpha · X
· Midday Alpha · by Buzzberg Research
Themes on this desk
Nebius Q3
Nebius reported $980.8 million of Q3 revenue against $907.2 million expected and guided 2027 capex of $40-45 billion against $28.9 billion expected.
Nvidia ratings
Bernstein, Oppenheimer, William Blair and Evercore ISI downgraded Nvidia, while Mizuho, UBS, Raymond James and Piper Sandler reiterated positive ratings.
Ticker heat
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Market Radar →El-Erian calls the 5.5% drop in October existing-home sales, to a 16-year low, consistent with his view that AI borrowing pushes rates higher
El-Erian says nothing is making room in the bond market for the uptick in AI-related borrowing, so higher interest rates will increasingly pressure rate-sensitive sectors like housing, amplified by inflation worries and playing out well beyond the US.
Sobering US housing data: October sales of existing US homes fell 5.5% to their lowest level in 16 years.
In El-Erian's view, rate-sensitive sectors bear the cost of rising AI-related borrowing.
Watch Government bond yields and housing activity.
Source →Nscale is reportedly pursuing multiple AI data centers in South Korea, per Korean media relayed by Jukan
The reports suggest the Democrats' midterm victory has slowed US data center expansion, prompting Nscale to accelerate its push into South Korea and other Asian markets; CoreWeave is also reportedly pursuing a data center in South Korea.
UK-based AI infrastructure company Nscale is pursuing plans to build multiple AI data centers in South Korea, according to Korean
Neocloud capacity plans may shift toward Asia if US expansion slows.
Watch Confirmed Nscale or CoreWeave site plans in South Korea.
Source →Regarding $NBIS earnings results: To show you how fast they're growing... from Q2 to Q3: Revenue: $582.3M -> $980.8M (+68% QoQ) Adjusted…
…EBITDA: $236.2M -> $465.8M (+97% QoQ) AI cloud adj. EBITDA margin: 49.7% -> 53.2% Net Income: −$190.4M -> −$37.5M ARR has reached $6.4B at the end of Sep. In terms of management commentary: - Since start of Q3, Nebius signed $12B+ of new contracts - Average GPU pricing rose 20%+ sequentially, payback shortened from 22M -> 19M - On Q3 deals, prepayments covered 100% of associated capex, up from 50–60% in Q2 (insane for financing) - Contract value per MW exceeded $25M+ from Q3 up from ~$20M Q2 - 5GW contracted power year end With $10B of committed customer prepayments in 2026 and $17B-$20B in 2027. Now, prepayments and borrowing against existing contracts covers ~75-85% of 2027 capex. On subsidiaries: 1. Avride - 250 autonomous vehicles fleet, over 100,000 passenger rides (with companies like $UBER). Fully driverless robotaxi targeted H1 2027. 2. Toloka - Revenue doubled sequentially 3.…
Regarding $NBIS earnings results: To show you how fast they're growing... from Q2 to Q3: Revenue:Source →
Nvidia says Jensen Huang resigned as president, CEO and director, with CFO Colette Kress as interim CEO
The board will consider internal and external candidates for a permanent CEO; Kress continues as EVP and CFO while serving as interim CEO, and Harvey C. Jones becomes the first-ever chair of the board.
NVIDIA Announces CEO Transition November 12, 2026 Jensen Huang Resigns Colette Kress, Executive Vice President and Chief Financial Officer, Appointed
Nvidia's CFO is also running the company until a permanent successor is named.
Watch Naming of a permanent CEO.
Source →Morgan Stanley counts $646 billion of AI-related debt issuance across global credit markets
Per @pequityresearch, Morgan Stanley says AI-related debt issuance across global credit markets has reached $646 billion, and around 50% of hyperscaler debt matures beyond 10 years.
Morgan Stanley: we're now at $646 billion of AI-related debt issuance across global credit markets.
AI borrowing is now a large, long-dated supply for credit markets.
Watch Further hyperscaler bond issuance.
Source →