AI Data Center Stocks Surge; Google's Inventory Grows to $13.3B

Key Takeaways

• Cipher Digital reported Q3 2026 revenue of $26.7 million, missing the $37.5 million consensus estimate, despite $16.6 billion in contracted revenue
• Applied Digital must finance about 800 megawatts of data center capacity over the next 12 months and carries $6.4 billion in total debt
• Williams Companies stock climbed 30% over the past year driven by AI data center power demand, with Q3 revenue of $3.2 billion beating expectations
• Alphabet's inventory grew from $2.4 billion to $13.3 billion as it began selling complete TPU systems to customers
• Intel redirected Oregon manufacturing capacity from Panther Lake to Intel 3 for Granite Rapids server CPUs and needs $5.3 billion to $6.1 billion in funding
• OpenAI is merging ChatGPT and Codex usage limits into one shared gauge for Plus, Pro, and Business subscribers
• Moody's upgraded Nokia to Baa3 investment grade, forecasting operating margins rising from 5% in 2026 to 11.5% by 2028
• Tria launched a feature letting AI agents trade perpetual futures on Hyperliquid and Decibel using restricted keys that prevent withdrawals
• Google lost nearly $500 billion in market value in one week as capital markets showed backlash against Silicon Valley AI narratives
• The Department of Energy projects data centers could reach 12% of U.S. electricity demand by 2028

Cipher Digital stocks rebound after analyst price-target cuts

Cipher Digital surged 11% and IREN jumped 10% in morning trading after steep month-long declines. J.P. Morgan cut its Cipher Digital price target to $18 from $22 but kept an Overweight rating. Cipher Digital reported Q3 2026 revenue of $26.7 million, missing the $37.5 million consensus estimate. The company holds $16.6 billion in contracted revenue across three campuses but carries $6.7 billion in total debt.

Williams Companies stock rises on AI data center power demand

Williams Companies stock has climbed 30% over the past year and 222% over five years due to AI data center power demand. CEO Chad Zamarin targets 11% or more compound annual EBITDA growth through 2030. The Socrates behind-the-meter power project came online ahead of schedule. Williams reported Q3 adjusted EPS of $0.54 and revenue of $3.2 billion, beating expectations. The Department of Energy projects data centers could reach 12% of U.S. electricity demand by 2028.

Applied Digital rebounds as AI data center stocks recover

Applied Digital surged 9% after a financing scare pushed the stock down 30% over the past month. CEO Wes Cummins said the company must finance about 800 megawatts of data center capacity over the next 12 months. Applied Digital has approximately $36 billion in contracted revenue across five campuses and $6.4 billion in total debt. The company remains on track for 3.5 to 4 gigawatts of capacity by 2030.

Applied Digital leads AI data center stock rebound

Applied Digital and IREN each surged 9% as CEO Wes Cummins defended the company's 1.4-gigawatt expansion plan. CoreWeave accounts for an estimated 30% of Applied Digital's contracted revenue. The company's quarterly interest expense of $77 million exceeds its $65 million base rent. Applied Digital says tenants for unfinanced capacity are rated AA or better, and its next quarterly report is expected January 5, 2027.

Moody's upgrades Nokia to investment grade on AI growth

Moody's upgraded Nokia to Baa3 investment grade, lifting its rating from Ba1 with a positive outlook. The upgrade reflects growing demand for cloud and AI infrastructure. Nokia's Network Infrastructure unit, strengthened by its Infinera acquisition, is expected to drive margin expansion. Moody's forecasts adjusted operating margins to widen from about 5% in 2026 to 9% in 2027 and 11.5% in 2028. Nokia has €4.7 billion in adjusted cash and aims to reduce debt-to-EBITDA from 1.9x to 1.3x by 2028.

Moody's upgrades Nokia to investment grade on AI growth

Moody's upgraded Nokia to Baa3 investment grade, citing strong demand for AI and cloud infrastructure. The upgrade reflects growth in Nokia's Network Infrastructure unit after its Infinera acquisition. Nokia expects operating margins to rise from 5% in 2026 to 11.5% by 2028. However, restructuring costs surged to about €1.1 billion this year, pressuring free cash flow. Moody's forecasts a return to positive free cash flow of €700 million to €750 million annually by 2027.

OpenAI prepares safeguards for midterm elections

OpenAI's Head of Civic and Strategic Risk, Josh Lawson, discussed the company's election safeguards with NBC News. The conversation covered plans for Election Night and how AI is affecting the midterm elections. OpenAI created a dedicated election war room to monitor and address risks. The discussion highlighted growing concerns about AI's influence on democratic processes.

Tria allows AI agents to trade perpetual futures

Tria launched a feature on October 30 letting AI agents trade perpetual futures using restricted keys. The keys allow trading on Hyperliquid and Decibel but do not permit withdrawals. Users can set expiration times or revoke keys at any time. The feature uses real mainnet markets rather than testnet environments. Tria's design separates trading authority from account custody to provide safer delegation.

Malaysia trains rural communities in digital and AI skills

Rural communities in Muar, Malaysia are receiving digital training to close the urban-rural skills gap. Programs teach basic skills like email, Microsoft Word, and Excel to farmers, fishermen, and small business owners. The Muar district in Johor has seen rising digital literacy through local training sessions. The Malaysian government launched these initiatives to help rural residents participate in the digital economy. Officials plan to expand the programs to reach more communities.

AI hardware creates new inventory and production challenges

Alphabet's inventory grew from $2.4 billion to $13.3 billion as it began selling complete TPU systems to customers. Google Cloud CEO Thomas Kurian confirmed components are purchased after contracts are signed, creating new working capital demands. Intel redirected Oregon manufacturing capacity from Panther Lake to Intel 3 for Granite Rapids server CPUs. Intel also faces shortages of advanced substrates for EMIB packaging, with funding needs of $5.3 billion to $6.1 billion. Equipment makers Lam Research and KLA also saw rising inventories in raw materials and work in process.

OpenAI combines ChatGPT and Codex usage limits in new plan

OpenAI plans to merge the usage limits for ChatGPT and its Codex coding assistant into one shared gauge for Plus, Pro, and Business subscribers. The change comes as the company integrates more autonomous project capabilities into ChatGPT. OpenAI says most users should not face more frequent limit resets, but has not disclosed the new allowance amounts. Some users on Reddit have already criticized the move as a poor decision.

Federal judge rules AI child porn charge is constitutional

A federal judge in Denver declined to dismiss a criminal charge against Jon Carl Anderhub for possessing artificially generated child pornography. The judge found that the First Amendment does not protect this conduct. The government argued that the charge involves materials that moved in interstate commerce, which distinguishes it from a private possession case. The court ruled that this key factor means the charge is constitutional.

Silicon Valley AI narrative faces capital market backlash in October

Silicon Valley CEOs continue to promote AI as a replacement for human labor, but October capital markets showed a shift in expectations. BlackRock noted the correlation between crude oil and US Treasury yields broke down as AI risk replaced geopolitical risk. Google lost nearly $500 billion in market value in one week. Some companies like Banco Santander showed real returns, while others' spending outpaced their cash flow. Agent companies like Dazzle AI still rely on human outsourcing despite claims of autonomy.

AI trade faces test of long-term fundamentals, strategist says

Scott Chronert, Head of U.S. equity strategy at Citi Research, says confidence in AI enablers depends on long-term fundamentals. He believes large-cap healthcare stocks will benefit from market rotation and Blue Wave bets. He also notes that if oil, inflation, and rates ease, small caps could emerge as a quasi-anti-AI trade.

Sources

• Cipher Digital Soars 11% as AI Data Center Stocks Rebound After Price-Target Selloff; IREN Jumps 10%, TeraWulf Surges 9%
• Williams Companies Stock Soars on AI Power Demand. Is It Too Late to Get In?
• Applied Digital Surges 9% as AI Data Center Stocks Rebound From Financing Jitters; IREN Jumps 9%, Nebius Climbs 7%
• Applied Digital Surges 9% as AI Data Center Stocks Rebound From Financing Jitters; IREN Jumps 9%, Nebius Climbs 7%
• Moody’s lifts Nokia to Baa3 investment grade on AI and cloud momentum
• Moody’s lifts Nokia to Baa3 investment grade on AI and cloud momentum
• Inside OpenAI’s ‘election war room’ and AI's impact on the midterms
• Tria Lets AI Agents Trade Perpetuals With Restricted Keys
• Bridging rural digital skills gap with AI, digital training
• AI Hardware’s Hidden Cost: Between Orders and Output
• 'Worst decision ever by OpenAI' — ChatGPT's new usage limits may test subscribers' patience
• Federal judge: AI child porn charge does not violate First Amendment
• Silicon Valley CEOs' AI Narrative Meets Capital Market Backlash as October Trading Reveals Cracks in Expectations
• AI trade faces a key test of confidence in long-term fundamentals: Strategist