Rosenblatt notes that high-performance computing names have been under pressure recently as the momentum trade has slowed and that selloff intensified yesterday on concerns over Meta's (META) potential cloud offering, which was a reaction the firm calls "overdone." Meta doesn't have the ability to back out of its committed contracts or resell capacity that has been contracted through CoreWeave (CRWV), says the analyst, who also doesn't view the news as a negative demand signal. The firm sees this weakness as a buying opportunity and highlights Galaxy Digital (GLXY) since the stock has been "hit harder than most" due to its direct exposure to CoreWeave. The firm also continues to favor Cipher Mining (CIFR) amid the recent pullback, says the analyst, who has Buy ratings on Cipher and Galaxy.
