Sam Badawi
LIVE Cipher Mining Q3 Earnings | AI Infrastructure with Sam
11/3/2025, 12:53:11 AM
Economic Summary
- There is a current shortage of data-center capacity: major cloud providers (AMZN, MSFT, GOOGL, META) are signing with third parties because they cannot build capacity quickly enough, implying persistent structural demand for outsourced capacity.
- The industry is shifting toward renting access to hardware rather than full-stack leases, as exemplified by deals with providers and partners like Dell and specialized suppliers, which creates more recurrent, predictable revenue.
- Smaller clients as well as hyperscalers are participating in these capacity and hardware-access deals, broadening the market beyond only the largest cloud companies and signaling widespread demand across customer sizes.
Bullish
- Hyperscalers and large cloud customers are signing third-party capacity deals because they cannot build enough data-center supply quickly, implying sustained demand for outsourced hardware and colocation providers.
- Hardware rental or 'access to hardware' business models (versus full-stack rentals) are becoming more recurrent and create predictable revenue streams for providers and partners like Dell or specialty data-center firms.
- High demand from major cloud providers (AWS/AMZN, Microsoft/MSFT, Google/GOOGL, Meta/META) suggests continued strong cloud consumption, supporting vendors across the supply chain.
Bearish
No bearish cases captured.
Bullish tickers
AMZNMSFTDELLGOOGLMETACYPHER
AMZN
Bullish
AWS outsourcing capacity to third parties signals sustained cloud demand and a need for external data-center supply.
MSFT
Bullish
Microsoft is signing capacity/access deals, indicating strong Azure demand and benefits for providers in its ecosystem.
DELL
Bullish
Dell is participating in hardware-access deals, pointing to new rental-style revenue streams and customer demand for hardware access.
GOOGL
Bullish
Google Cloud faces capacity constraints and is partnering for external supply, reflecting robust cloud consumption.
META
Bullish
Meta's capacity needs contribute to the overall shortage, underscoring demand for third-party data-center solutions.
CYPHER
Bullish
Mentioned upcoming earnings and positioned as a potential recurrent supplier to hyperscalers and other customers benefiting from capacity shortages.