Nvidia Corp. (NVDA) delivered a blockbuster third-quarter earnings report Wednesday evening, and the ripple effects are lighting up an entire category of stocks that most people wouldn't immediately connect to the chipmaker.
Shares of AI data center operators and high-performance computing companies jumped after the closing bell, continuing a pattern that's turned these former Bitcoin mining operations into one of the more interesting infrastructure plays in the AI boom.
Why Former Bitcoin Miners Are Winning the AI Race
Here's the thing: AI data center and HPC provider stocks have effectively become a "leveraged beta" trade on Nvidia's hardware dominance. But it's not just about riding Nvidia's momentum. There's actual business logic here.
When a hyperscaler needs to spin up massive AI computing capacity, it's significantly faster to lease a former Bitcoin miner's existing power infrastructure and facilities than to build a new power plant from scratch. And speed matters in this race.
The biggest bottleneck for AI right now isn't just chips—it's electricity. Nvidia's Blackwell chips require massive amounts of power and cooling, which means having access to power infrastructure is becoming just as valuable as having access to the chips themselves.
Which Stocks Are Moving
Cipher Mining, Inc. (CIFR), IREN Ltd. (IREN) and Applied Digital Corp. (APLD) all took off after Nvidia's strong quarterly results and forward guidance reassured investors that the AI trade is still going strong.
Other HPC and data center stocks also climbed, including TeraWulf, Inc. (WULF), WhiteFiber, Inc. (WYFI), Riot Platforms, Inc. (RIOT) and Nebius Group N.V. (NBIS).
Wall Street needed reassurance following a rough patch for tech stocks heading into Nvidia's earnings report, and the AI chipmaker delivered exactly what investors wanted to hear.
"AI is going everywhere, doing everything, all at once," Nvidia CEO Jensen Huang said in the company's earnings release.
That kind of enthusiasm from Huang, combined with solid numbers and guidance, was enough to reignite confidence in the broader AI infrastructure ecosystem—including these power-hungry data center operators who've pivoted from mining crypto to powering the AI revolution.