📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Rosenblatt Sees HPC

📊 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐍𝐎𝐓𝐄: Rosenblatt Sees HPC Selloff as Buying Opportunity, Backs $Galaxy Digital(GLXY.US) and $Cipher Digital(CIFR.US)

👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:

➤ 𝐑𝐨𝐬𝐞𝐧𝐛𝐥𝐚𝐭𝐭 said the recent 𝐇𝐏𝐂 selloff presents a buying opportunity.

➤ Firm named 𝐆𝐚𝐥𝐚𝐱𝐲 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 $Galaxy Digital(GLXY.US) and 𝐂𝐢𝐩𝐡𝐞𝐫 𝐌𝐢𝐧𝐢𝐧𝐠 $Cipher Digital(CIFR.US) as top picks.

➤ Selloff followed concerns over 𝐌𝐞𝐭𝐚'𝐬 potential cloud offering impacting HPC demand.

➤ Rosenblatt said Meta cannot back out of contracted 𝐂𝐨𝐫𝐞𝐖𝐞𝐚𝐯𝐞 capacity or resell it.

➤ Galaxy Digital shares have fallen about 𝟐𝟐% over the past two weeks.

➤ Cipher Mining has declined about 𝟏𝟑%, widening its valuation discount.

➤ Firm said Meta's move appears 𝐜𝐨𝐦𝐩𝐚𝐧𝐲-𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜, not a broader demand signal.

➤ Rosenblatt believes underlying 𝐇𝐏𝐂 demand remains strong despite recent volatility.

👉 𝐖𝐡𝐲 𝐈𝐭 𝐌𝐚𝐭𝐭𝐞𝐫𝐬:

➤ Suggests recent HPC weakness may reflect 𝐬𝐞𝐧𝐭𝐢𝐦𝐞𝐧𝐭 rather than fundamentals.

➤ Stable AI infrastructure demand could support 𝐇𝐏𝐂-𝐞𝐱𝐩𝐨𝐬𝐞𝐝 stocks.

➤ Highlights potential value opportunities following the sector's sharp correction.

👉 𝐄𝐱𝐩𝐞𝐫𝐭 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭:

➤ "META doesn't have the ability to back out of its committed contracts or resell capacity that has been contracted through CRWV." — 𝐂𝐡𝐫𝐢𝐬 𝐁𝐫𝐞𝐧𝐝𝐥𝐞𝐫, Rosenblatt Analyst.

➤ "The development appears to be more company-specific as META attempts to justify its massive capex." — 𝐂𝐡𝐫𝐢𝐬 𝐁𝐫𝐞𝐧𝐝𝐥𝐞𝐫.

➤ "We do not view this as a negative demand signal." — 𝐂𝐡𝐫𝐢𝐬 𝐁𝐫𝐞𝐧𝐝𝐥𝐞𝐫.

➤ Rosenblatt believes the market reaction across the HPC sector is "𝐨𝐯𝐞𝐫𝐝𝐨𝐧𝐞."