Investors should consider Hims & Hers Health (HIMS) as a high-conviction buy under $20, as the market has yet to price in an estimated $210 million in annual recurring revenue from its new weight loss subscriptions. Nebius Group (NBIS) remains a top pick in the AI infrastructure space following a massive $27 billion compute deal with Meta (META), signaling its evolution into a specialized "GPU Cloud" powerhouse. While Iris Energy (IREN) is currently trading at a 55% discount from recent highs, investors should be cautious of potential share dilution from its $6 billion equity offering. For those seeking exposure to the AI boom, prioritize companies like NBIS that use convertible debt to fund data centers rather than dilutive "At-The-Market" stock sales. Overall, the "GPU Cloud" sector offers significant upside as global demand for AI compute capacity continues to outpace current supply.

Hims & Hers Health, Inc. (HIMS)

• The stock has remained stagnant despite significant positive news regarding its weight loss category.
• CEO Andrew Dudum recently indicated expectations for 100,000 subscriptions per month for Wegovy-related products.
• Revenue Calculation: Based on an estimated average price of $175/month, this equates to approximately $210 million in Annual Recurring Revenue (ARR) that the speaker believes is not yet priced into the stock.
• Growth Projections: The speaker projects 34% growth over the next 12 months, which includes $200 million from the Eucalyptus acquisition but excludes the potential $210 million from the new weight loss subscriptions. If included, growth could reach 40-45%.
• Valuation: The stock is described as "ignoring facts" and trading with the macro market. It currently sits at an Enterprise Value (EV) over Gross Profit (GP) divided by revenue growth of 0.07, which the speaker identifies as historically cheap.

Takeaways

• Bullish Sentiment: The speaker views the current price (under $20) as a significant buying opportunity due to the market's failure to react to the weight loss subscription numbers.
• Fundamental Disconnect: There is a perceived gap between the company's fundamental performance (new customer acquisition for branded therapies) and its share price.
• Risk Factor: Potential "cannibalization" of older compounded sales by new branded therapies, though the speaker argues evidence suggests many older customers are "grandfathered" into existing plans.

Nebius Group (NBIS)

• The stock recently hit an all-time high, driven by news related to Meta’s (META) new Large Language Model (LLM) release.
• The Meta Connection: Meta has reportedly signed a $27 billion AI deal with Nebius for compute power. Success in Meta's AI models translates directly to increased usage of Nebius's "tokens" (compute capacity).
• Operational Changes: Nebius recently extended the depreciation schedule for its GPUs by one year, signaling that the hardware has a longer-than-expected lifetime value.
• Financing Strategy: Nebius is utilizing convertible debt to fund its massive data center build-outs, which the speaker prefers over the "At-The-Market" (ATM) equity offerings used by competitors.

Takeaways

• Sector Outlook: The speaker views Nebius as a potential "mini AWS" or "Azure of GPUs," providing the underlying infrastructure for the AI boom.
• Pricing Power: GPU rental prices per hour are increasing rather than decreasing, suggesting "insatiable demand" for AI intelligence.
• Bullish Sentiment: Despite the recent run-up, the speaker believes the stock is still "way too cheap" and headed higher as market "spookiness" regarding data center delays fades.

Iris Energy (IREN)

• Mentioned as a primary competitor to Nebius in the high-performance computing (HPC) and Bitcoin mining space.
• The stock is currently down roughly 55% from its highs, potentially offering a value opportunity compared to the surging Nebius.
• Financing: Unlike Nebius, IREN has authorized a $6 billion ATM (At-The-Market) offering to fund growth, which involves selling shares and potentially diluting investors.

Takeaways

• Bearish Sentiment (Contextual): The speaker avoids IREN because they sell their Bitcoin holdings rather than holding them on the balance sheet, which the speaker considers a "cardinal sin" for a miner.
• Comparative Value: While the speaker dislikes the Bitcoin selling strategy, they admit that at a 55% discount, IREN is likely "way too cheap" from a pure valuation standpoint.

Investment Themes: AI Infrastructure & GPU Clouds

• The "GPU Cloud" Thesis: Companies like Nebius, CoreWeave, and IREN are positioned as the essential infrastructure layer below giants like AWS and Azure.
• Unlimited Demand: The speaker compares the demand for AI compute to the demand for credit/loans—suggesting that as long as intelligence can be generated, there will be a market for it.
• Financing Risks: Investors should monitor how these companies fund their massive capital expenditures (CapEx). Convertible debt is highlighted as a more predictable and preferred method over dilutive equity sales (ATMs) in the current environment.