Chicago, IL – September 25, 2024 – Today, Zacks Investment Ideas feature highlights TeraWulf WULF, Core Scientific CORZ, Applied Digital APLD and Nvidia NVDA.
Most people forget that the internet was invented in 1983. However, it took until the late 1990s for the internet industry to go mainstream. Pivotal technological advancements, namely Tim Berners-Lee's World Wide Web invention, the development of web browsers, and the availability of high-speed internet, were pivotal advances that led to the internet age.
Since gaining popularity in the late 1990s, the internet industry has repeatedly delivered stock market winners. Could artificial intelligence stocks provide similar true market leaders like the internet once did? According to the world's top technologists, the answer is a resounding "Yes!"
"AI will have more impact than the personal computer, the phone or the internet. It's the most exciting innovation of my lifetime."~ Bill Gates, co-founder, Microsoft
Unlike artificial intelligence, few saw the Bitcoin wave coming. Bitcoin started as a white paper in 2008 and was mainly used by internet nerds or for nefarious reasons like online drug transactions. However, the world's first and largest digital currency has defied many skeptics along the way and has transformed into the decade's top-performing asset class, accruing gains of more than 6,000%. Though Bitcoin's success has exceeded all expectations, its growth trajectory is still getting started.
Bitcoin mining and artificial intelligence share a fundamental technological requirement: massive parallel computing power. Bitcoin miners use this technology to solve cryptographic puzzles to mine Bitcoin, while AI companies leverage the technology to train their models. Below are three companies that benefit from these two megatrends:
TeraWulf is an "infrastructure-focused Bitcoin mining company accelerating the transition to a zero-carbon future." The company focuses on helping Bitcoin miners to mine Bitcoin using sustainable energy sources like nuclear, hydro, and solar energy. With massive data center construction underway for Bitcoin mining applications and AI, the need for clean energy is becoming abundantly clear.
Last week, Microsoftannounced a massive deal with Constellation Energyto revive the closed Three Mile Island by 2028 to power its data centers with nuclear energy. MSFT is likely the first mover, but other tech companies will likely follow suit and WULF is set up perfectly to benefit. By the end of 2025, the company estimates its energy production capability will double.
Core Scientific is one of the top digital asset miners and operates several data centers nationwide. CORZ derives most of its revenue from Bitcoin mining. Over the past three years, no other public company has mined more Bitcoin than CORZ.
Applied Digital is a "designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications. Earlier this month, APLD shares soared 65% after the company announced a $160 million deal with Nvidia to bring its data center and GPU cloud solutions to scale. After digesting its recent gains, APLD shares are trying to break out of a multi-month base structure.
Data centers, AI, and Bitcoin mining are three fast-growing businesses bound to be multi-year megatrends. CORZ, WULF, and APLD are three companies that should benefit for years.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Applied Digital Corporation (APLD) : Free Stock Analysis Report
TeraWulf Inc. (WULF) : Free Stock Analysis Report
Core Scientific, Inc. (CORZ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.