IREN vs Nscale

AMD Stands Out as AI Trade Fractures

As the AI trade shows signs of cracking, with recent selloffs in CoreWeave and IREN and growing concerns about AI infrastructure spending, CNBC's Options Action contributor Michael Khouw identifies Advanced Micro Devices (AMD) as a standout investment opportunity. Despite AMD's 8.1% drop following Meta's financing plans and a supply warning from Lam Research, Khouw's quantitative screen highlights AMD as the only major chipmaker meeting all criteria for outperformance. These criteria include price above the 200-day moving average, revenue and EPS growth exceeding S&P 500 benchmarks, rating upgrades, PEG below 3, and strong ROE/ROIC. Consensus estimates for Q3 2026 project EPS of $1.94 on revenue of $13.06 billion, representing year-over-year growth of 62% and 41% respectively. CEO Lisa Su recently announced plans to substantially increase supply in 2027 to meet surging AI demand. The article also discusses an options strategy—a call spread risk reversal—to manage the high implied volatility around earnings.

• AMD's stock dropped 8.1% due to Meta's financing plans and a supply warning from Lam Research.
• Consensus expects AMD Q3 2026 EPS of $1.94 on revenue of $13.06 billion.
• AMD's year-over-year growth is projected at 62% for EPS and 41% for revenue.

10-K Financial Filing Analysis for IREN (2026-08-27)

IREN Limited filed its Form 10-K for the fiscal year ended June 30, 2026, detailing its strategic transition from Bitcoin mining toward high-density AI Cloud Services and data center infrastructure. The company reported substantial business transformation, holding ~40MW of operational AI Cloud capacity alongside 23.2 EH/s (~380MW) of Bitcoin mining capacity earmarked for substantial decommissioning and reallocation to AI workloads by December 31, 2026. For FY 2026, IREN recorded a net loss of $702.6 million, compared to net income of $86.9 million in FY 2025, driven by intensive capital investments, hardware procurement, and expanding debt obligations. The company closed significant capital initiatives, including $3.6 billion in secured GPU debt financing in May 2026, and entered a strategic collaboration with NVIDIA enabling up to 5GW of DSX-aligned AI infrastructure deployments.

• IREN incurred a consolidated net loss of $702.6 million for the fiscal year ended June 30, 2026, compared to a net income of $86.9 million for the prior fiscal year ended June 30, 2025.
• Total outstanding indebtedness as of June 30, 2026, reached $7,976.0 million (comprising $7,705.6 million in debt and $270.4 million in finance leases), supported in part by a $3.6 billion GPU financing program executed in May 2026.
• The company secured grid-connected power capacity representing approximately 5GW across North America, Europe, and Australia, while operating ~40MW of AI Cloud capacity and targeting completion of its Bitcoin mining phase-out by December 31, 2026.

Aker CEO dismisses Microsoft Nscale contract loss as minor

The CEO of Aker ASA, Øyvind Eriksen, the largest investor in UK AI infrastructure startup Nscale, downplayed Microsoft's withdrawal from a data centre deal as a "minor contract". Speaking during Aker's Q3 results presentation, Eriksen reassured investors ahead of Nscale's planned US IPO targeting a $35bn valuation. He noted that since Nscale's Series C funding round, the company's activity and contract portfolio more than doubled, and the termination was expected. Microsoft cancelled the deal to lease compute capacity from Nscale's Essex data centre due to anticipated power supply issues. Nscale is reportedly close to a new multibillion-dollar deal with Anthropic, which would increase its commitment in West Virginia. Aker owns approximately 23% of Nscale, valued at $3.31bn based on the Series C valuation.

• Aker ASA CEO Øyvind Eriksen called Microsoft's cancellation of a data centre deal with Nscale a 'minor contract'.
• Aker owns approximately 23% of Nscale, valued at $3.31bn based on Nscale's Series C valuation.
• Microsoft cancelled the lease agreement due to expected power supply issues at Nscale's Essex data centre.

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