Neocloud Stocks Rally on Tuesday After NVIDIA’s $500 Billion Pledge. Why TeraWulf, Hut 8, and Galaxy Digital Are Rising
NVIDIA just corralled Wall Street's biggest names behind a half-trillion-dollar AI financing push, and four battered neocloud stocks are suddenly surging. Here is what the deal means for companies sitting on tens of billions in contracted revenue but still nursing…
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The neocloud group is bouncing back midday Tuesday after a brutal stretch. Shares of TeraWulf (NASDAQ:WULF) are up 4% to $17, Hut 8 (NASDAQ:HUT) leads the group with a 7% gain to $91, Galaxy Digital (NASDAQ:GLXY | GLXY Price Prediction) is higher by 4% at $20, and Core Scientific (NASDAQ:CORZ) is up 4% to $20.
NVIDIA-Led $500B Financing Push Reignites the Trade
The catalyst is a partnership between NVIDIA and Wall Street heavyweights to stand up a financing vehicle for the AI buildout. According to Yahoo Finance reports published this morning, NVIDIA is teaming with Apollo, BlackRock, Goldman Sachs, Blackstone, and KKR to mobilize more than $500 billion in third-party capital for AI data center infrastructure. The structure would shift financing off NVIDIA’s balance sheet and treat compute capacity as an investable asset class, with NVIDIA reportedly willing to underwrite up to 25% of qualifying loans. Wells Fargo reaffirmed an Overweight rating on NVIDIA with a $315 price target on the news.
For the neoclouds, this is a direct read-through. All four have built power-advantaged colocation platforms tied to hyperscaler and AI-native tenants, and their contracted revenue books are enormous relative to current cash flow. Cheaper, more abundant project-level financing lowers the cost of build-out and validates the take-or-pay model these operators are underwriting.
Rebound After a Rough Stretch
The move follows real pain. WULF was down 26% over the past month, HUT off 24% in a week, GLXY lower by 22% in a month, and CORZ down 15% on the week. Part of that pressure came from commentary around SpaceX’s stated ambitions in compute, positioning Elon Musk’s private venture as a potential new hyperscale rival. That risk remains live, yet the financing news gives bulls a fresher, more concrete narrative to trade against.
The contracted backlog behind these names remains the anchor. TeraWulf points to roughly $27 billion or more in total contracted revenue across its platform. Core Scientific cites more than $24 billion in potential contracted revenue, anchored by a 15-year AMD partnership 15-year AMD partnership across roughly 530 MW. Hut 8 has flagged ~$26.6 billion in expected aggregate base-term value across 949 MW of contracted IT capacity. Galaxy’s Helios campus is set to begin recognizing roughly $80 million of quarterly lease revenue from CoreWeave starting Q3 2026.
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Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
