The next big AI infrastructure IPO is being pitched to investors in New York.
Nscale is a London-based data center operator — a "neocloud," in the same category as CoreWeave (NASDAQ: CRWV) and Nebius (NASDAQ: NBIS). It builds and runs GPU clusters for companies training and deploying large AI models.
Nvidia (NASDAQ: NVDA) is both an investor and the supplier. It participated in three consecutive rounds: the $1.1 billion Series B, a $433 million SAFE, and the $2 billion Series C in March.
The commercial anchor is Microsoft (NASDAQ: MSFT). Nscale is deploying roughly 200,000 Nvidia GB300 GPUs across sites in Europe and the U.S. under a deal reported at about $14 billion.
The company has been meeting prospective investors and has an investor day scheduled in New York next week, according to people familiar with the process.
Nscale has not yet filed its prospectus with the Securities & Exchange Commission.
It’s a young company that’s just two years old. Yet it’s already raised more than $6 billion in equity and debt from backers including Aker, 8090 Industries, Citadel, and Jane Street. The board now includes former Meta executives Sheryl Sandberg and Nick Clegg.
In March, Nscale bought American Intelligence & Power — a West Virginia data center complex with permits and power agreements already in place. Management projects that deal triples revenue in 2027 to $30 billion. For context, that would make it bigger CoreWeave’s expected revenues next year.
On Thursday, Nscale agreed to buy software startup Anyscale for a reported $1.65 billion. It's the same playbook CoreWeave ran with Weights & Biases just before its own IPO.
Here's the problem with the timing.
CoreWeave stock is down 25% over the past month. Australian neocloud Sharon AI is down 42% over the same stretch. The comparable stocks have been selling off right as Nscale explores a listing.
Nscale’s last financing was at a $14.6 billion valuation. The company is floating the idea of an IPO at a $25 billion valuation. That’s a big jump in just four months.
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MSFT reported revenue of $90.0 billion, up 18% year over year, while diluted earnings per share climbed 32% to $4.81. More importantly, Azure and other cloud services accelerated to 43% growth, Microsoft Cloud revenue reached $59.3 billion, and commercial remaining performance obligation expanded to $367 billion. Suggesting that enterprise customers have moved past experimenting with Microsoft’s AI platform and are now committing to it at a scale that can support recurring consumption over multiple years.
Twelve months ago, investors wanted proof MSFT could build the infrastructure needed to lead the AI race. Today, they’re asking whether those investments can produce durable demand before the company spends another $41 billion on capital expenditures next quarter. This earnings report doesn’t answer every question, but it provides the strongest evidence yet that Microsoft’s AI investment cycle is beginning to finance itself
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What do they know that the average American doesn't?
Commercial remaining performance obligation climbed to $367 billion, Microsoft Cloud revenue reached $59.3 billion, and Azure accelerated to 43% growth. This commercial backlog is from customers expanding commitments they expect to keep using for years, giving MSFT greater visibility into future revenue while reinforcing the durability of its cloud business.
MSFT wasn’t shy about matching that demand. Capital expenditures surged 70% to $41 billion, with the bulk of the spending directed toward AI infrastructure. Even so, operating income rose 18%, net income climbed 31%, and operating margin held at 45%. Few companies could absorb an infrastructure programmed of that magnitude without compromising profitability. Yet, Microsoft managed to expand both.
Consequently, the market didn’t need long to process the implications as shares climbed nearly 9% after hours, reclaiming the 20-day and 50-day moving averages and moving back above the psychologically important $400 level. The next test sits near the declining 200-day moving average around $434. A decisive move through that level would strengthen the technical picture and reinforce the view that investors are beginning to reward Microsoft’s AI economics rather than simply its AI ambition
Cash Flow Took A Hit And Management Didn’t Blink.
One figure, free cash flow, stood out for all the wrong reasons. It fell 23% to $19.6 billion, a sharp contrast to the company’s otherwise exceptional quarter. On its own, the number looks uncomfortable. The income statement tells a different story.
Operating cash flow climbed 30% to $55.4 billion, while net income reached $35.8 billion. The pressure came from the company’s decision to spend aggressively on data centres, networking equipment and AI hardware. Capital expenditures reached $41 billion, up 70% from a year earlier, with cash paid for property and equipment surging 110% to $35.8 billion.
Management isn’t behaving like a company worried about overbuilding. If anything, it’s signalling the opposite. During the earnings call, executives reiterated that demand for AI infrastructure continues to exceed available capacity, leaving Microsoft in a race to bring more compute online. The willingness to keep investing at this pace reflects confidence that customers will absorb the additional capacity rather than leave it sitting idle.
That investment cycle is unlikely to end soon. The real question for investors is no longer whether Microsoft can afford to spend tens of billions of dollars on AI infrastructure. It’s how long demand can continue outpacing supply. As long as that gap persists, management has little incentive to ease off the accelerator
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His "upgrade to Tesla" is a little-known company that just inked a groundbreaking Nvidia partnership — miles ahead of Tesla in the autonomous vehicle race. Plus a Hotlist and Hitlist.
I don’t often increase a position after a stock rallies. More often than not, I prefer buying into pessimism rather than strength. Microsoft is one of the few exceptions.
The investment case no longer rests on promises about what AI might become. Enterprises are embedding it into their operations, and Microsoft has now become the company collecting a cheque every time that happens. That’s a very different business from one selling software licences or productivity tools. It’s an ecosystem where cloud infrastructure, AI models, security and enterprise applications reinforce one another in ways few competitors can replicate.
But I don’t expect the road ahead to be smooth. A company investing this aggressively will always face questions about returns, valuation and execution. And those questions deserve to be asked. However, this quarter shifted the burden of proof. Investors now have stronger reasons to believe Microsoft’s spending is creating durable economic value than reasons to believe it’s becoming excessive.
That’s enough for me to maintain my Buy rating. If my pre-earnings thesis was that Microsoft needed to prove enterprises would make AI part of their everyday workflow, and that it should show up in its Azure consumption and Copilot adoption, this quarter delivered the closest thing to that proof I’ve seen so far.
Just days ago — on July 27th, 2026 — Medicus Pharma Ltd. (NASDAQ: MDCX) cleared a regulatory threshold worth understanding.
The FDA released a "Study May Proceed" letter for SKNJCT-005, authorizing MDCX to launch an NDA-enabling Phase 2b registrational clinical trial of SkinJect® in patients living with Gorlin Syndrome.
This clearance marks a definitive transition from exploratory Phase 2 clinical work into registrational-grade development.
Gorlin Syndrome — additionally known as Nevoid Basal Cell Carcinoma Syndrome — is a rare genetic disorder that subjects patients to an unrelenting cycle of surgical procedures across their lifetime.
Individuals with the condition can develop dozens to more than 1,000 basal cell carcinoma lesions, with onset often occurring as early as childhood or adolescence.
No FDA-approved lesion-directed treatment currently exists for this patient population.
That is the clinical void SkinJect is built to address.
The product is a dissolvable microneedle array patch engineered to deliver doxorubicin chemotherapy directly and precisely into basal cell carcinoma tumors.
Results from prior Phase 2 study SKNJCT-003 — which enrolled 90 patients across nine U.S. sites — showed 64% clinical clearance and 55% histological clearance at Day 57 in the 200 mcg dose group, with no treatment-related serious adverse events reported.
The study established a clear dose-response relationship, generating what the company has called "decision-grade" evidence.
Under SKNJCT-005, up to 50 Gorlin Syndrome patients will be enrolled, with the protocol targeting two to four lesions simultaneously. The FDA's requirement of at least two years of extended patient follow-up is something management has characterized as a protocol enhancement reinforcing durability evaluation — not a limiting condition.
Dr. Raza Bokhari, Executive Chairman and CEO of Medicus Pharma, called the FDA's action "a significant regulatory milestone."
Alongside SkinJect, MDCX is actively advancing Teverelix — a long-acting injectable GnRH antagonist developed for advanced prostate cancer patients carrying elevated cardiovascular risk.
The FDA issued a "Study May Proceed" authorization for a Teverelix Phase 2b dose-optimization study in February 2026, and the company has filed a substantial modification application through the EU Clinical Trials Information System targeting European clinical expansion.
Taken together, the two programs address an estimated$8Bn in addressable markets across multiple indications.
Breaking Down The Company: Medicus Pharma Ltd.
Medicus Pharma Ltd. is a precision-medicine-focused biotech with a presence across three continents.
Its foundational model is a "de-risk and partner" approach: push novel therapeutic assets through Phase 2 proof-of-concept studies, then engage established pharmaceutical partners for licensing or commercialization agreements.
The company joined Nasdaq in January 2025 and celebrated its first year on the exchange with a bell-ringing ceremony on January 22nd, 2026.
SkinJect (D-MNA) — its lead asset — progresses under the FDA's 505(b)(2) regulatory pathway, allowing the company to draw on the established doxorubicin safety record and potentially shorten the regulatory review cycle.
Phase 1 data on Teverelix presented at AACE 2026 confirmed predictable, dose-dependent hormone suppression with no unexpected safety signals.
Active collaborations include a working relationship with Reliant AI Inc. on clinical analytics and a memorandum of understanding with Helix Nanotechnologies targeting mRNA vaccine applications.
(Nasdaq: MDCX) Has 5 Key Potential Catalysts We're Currently Tracking
1). FDA Study May Proceed Letter Puts MDCX On The Registrational Track.
The July 27th, 2026 clearance for SKNJCT-005 positions MDCX as the only company currently advancing a lesion-directed therapy toward an NDA specifically for Gorlin Syndrome — a condition with no FDA-approved lesion-directed treatment today.
2). Orphan Drug Status Application Seeks Seven Years Of Potential Exclusivity.
MDCX submitted an Orphan Drug Designation application in April 2026 for SkinJect in Gorlin Syndrome, which — if granted — would provide MDCX a potential NDA fee exemption exceeding $5Mn and seven years of market exclusivity from the date of FDA approval.
3). Rare Pediatric Disease Designation Request Could Produce A Priority Review Voucher.
Filed in June 2026, the Rare Pediatric Disease Designation request for SkinJect — if awarded — would make MDCX eligible to receive a Priority Review Voucher upon NDA approval, a regulatory instrument with established value in the pharmaceutical licensing market.
4). Dual-Market Regulatory Push Positions Teverelix In The U.S. And Europe.
Having received FDA Phase 2b clearance in February 2026 and submitted for EU clinical expansion through the CTIS platform, MDCX is simultaneously progressing Teverelix across two of the world's largest pharmaceutical markets — targeting a combined addressable market the company pegs at approximately $6Bn.
5). 505(b)(2) Strategy Leverages Existing Doxorubicin Data To Streamline Review.
The FDA's confirmation that SkinJect qualifies for the 505(b)(2) pathway permits MDCX to integrate existing doxorubicin safety information into its NDA submission, a strategic filing advantage that could reduce both regulatory cost and time-to-decision compared to a new chemical entity submission.
Closing Thoughts
Medicus Pharma Ltd. (Nasdaq: MDCX) has not been generating attention without substance behind it.
The announcements this company has made over the past 18 months have consistently carried regulatory or clinical significance: Phase 2 data, FDA clearances, designation applications, conference presentations, and now formal clearance to begin a registrational trial for a rare disease where no approved lesion-directed therapy exists.
That is a pattern worth noting.
If you're tracking the biotech space for names with concrete near-term milestones and a pipeline built on clinical evidence first, MDCX belongs on your radar as 2026 continues to take shape.
We're initiating coverage on Medicus Pharma Ltd. (Nasdaq: MDCX).
