AI Computing Power Assetization Wave: Axe Compute Could Be the Most Undervalued GPU Compute Entry in US Stocks

From the end of 2025 to the first half of 2026, as other tracks (some high-valuation growth, cyclical, pure narrative themes) fade, and AI Capex continues to exceed expectations, with semiconductor and data center stocks significantly outperforming, a true market consensus is formed — "AI is no longer just one of the themes, but has become the absolute main line of the global capital market." Following research into undervalued US-listed AI companies, Axe Compute has become a key focus for us this year. Recently, on July 22, an announcement of a new $1.3 billion AI compute contract greatly strengthened our confidence in investing in Axe. If the contracts can be implemented in an orderly manner and the data is genuinely reflected in the financial reports in the future, we believe that "Axe Compute, a company currently with a market cap of less than $100 million, could become the most undervalued GPU Compute entry point in the US stock market."

1. A Splendid Transformation from Pharmaceuticals to AI Compute

Before its name change in December 2025, Axe Compute was formerly Predictive Oncology Inc. (NASDAQ: POAI), a typical US-listed micro-cap biopharmaceutical company. As a typical "small-cap biotech stock," POAI had mediocre performance in the pharmaceutical stage: revenue lingered at the level of hundreds of thousands of dollars for a long time, with continuous losses, and its market cap hovered in the tens of millions of dollars range, attracting very little attention from the capital market.

In September 2025, the company suddenly launched the "Strategic Compute Reserve," explicitly using the Aethir native utility token (ATH) as its core, continuing the Crypto Treasury strategy narrative, hinting at the company's shift towards the AI narrative and compute business.

In October 2025, it completed two simultaneous PIPE financings, totaling $343.5 million in cash, through a mixed financing method of $50.8 million cash plus $292.7 million nominal value of ATH. Through this financing, the company's balance sheet shifted from negative equity to a gain of $47.7 million in positive equity, acquiring 6.348 billion ATH. This formally established a deep binding between the company and the Aethir network, creating a capital operation model combining the AI compute narrative and treasury company. Since then, the company has entered the observation scope.

From December 11 to 12, 2025, the company rebranded, changing its name from Predictive Oncology Inc. → Axe Compute Inc., and its ticker from POAI → AGPU, continuing to trade on Nasdaq.

By the end of the first quarter of 2026, Axe Compute officially began operations as a new cloud service provider. Related parties of the crypto project Aethir may become its largest shareholders, signaling a comprehensive transformation to the financial market:

On February 9, Charles L. Nuzum became Chairman, and Christopher Miglino (who previously participated in the ATH transaction structure design) officially took over as CEO. The board was restructured in March, with Kyle Okamoto (former Aethir CTO/GM) appointed as President.

On April 1, the company completed enterprise-level commercial access to the Aethir distributed GPU network (400,000+ GPU containers, 200+ locations, 93 countries), signing the first batch of enterprise contracts worth approximately $12 million. These contracts are primarily for the Immediate Access Program, contributing an expected monthly revenue of approximately $835,000, with payments structured as upfront + monthly prepayments, already beginning to contribute a small amount of compute revenue (approximately $7,000 actually recognized in Q1).

On April 22, 2026, disclosed a $260 million B300 dedicated cluster contract (the first order for the Build Program). Key contract terms: 36-month take-or-pay agreement, delivery of 2,304 NVIDIA B300 GPUs + high-speed AI storage (US Tier-3 data center, 4.8 MW dedicated power). Structured deposit + prepayment + monthly prepayments. After going live in Q3 2026, quarterly revenue is expected to be approximately $21 million.

On May 27, 2026: Confirmed receipt of a $43 million upfront payment for the B300 contract. This is the first real cash milestone for the contract, confirming that the Build model has started as planned, with hardware procurement and deployment underway.

On June 16, 2026: Secured a $25.9 million long-term deployment contract for Blackwell / Grace Blackwell (12 months + 24 months, renewable), of which $12.9 million has been prepaid.

On July 22, 2026: Announced new AI infrastructure customer contracts totaling $1.3 billion. These agreements are based on five-year terms with options for renewal, require significant upfront payments, and include provisions for upgrading GPUs as new generations become available. Revenue is expected to begin generating by the end of the fourth quarter of 2026, with prepayments due in the third quarter of 2026. At that point, Annual Recurring Revenue (ARR) will exceed $384 million.This large $1.3 billion order should be the starting point for the entire market to truly re-evaluate Axe.

2. Multiple AI Compute Solutions, A Highly Elastic "CoreWeave": Deconstructing Axe's Business Model

Axe Compute Inc. is a technology company focused on providing high-performance computing infrastructure for artificial intelligence (AI) workloads. It secures large-scale GPU capacity from hardware manufacturers and infrastructure providers, then deploys it to enterprise customers through long-term service agreements. Services include hardware procurement, colocation, networking, storage, and financing. Axe also retains its oncology drug discovery solutions business, but it is not currently the company's main focus.

1. Axe's Business is Divided into Two Product Lines

(1) Immediate Access Program

Targets customers needing rapid deployment and elastic scaling. Leveraging the existing GPU inventory of the Aethir distributed network, deployment can be completed in as fast as 48 hours, covering over 200 global nodes. Suitable for inference, fine-tuning, small to medium-scale training, etc., billed monthly based on reserved capacity.

(2) Build Program / AI Factory

Targets ultra-large-scale, long-cycle dedicated compute needs. Axe takes responsibility for the overall architecture design, data center site selection and power negotiations, hardware financing arrangements, and final enterprise-level SLA (Service Level Agreement) operations — "Design-Deploy-Own-Operate."

The $260 million, three-year large order signed in April 2026 is a landmark case of this model. The company plans to procure a dedicated cluster of 2,304 NVIDIA B300 GPUs and high-speed AI storage infrastructure from a U.S. Tier-3 data center facility, supported by 4.8 MW of dedicated redundant power. The customer specifies the deployment location and service standards. The deployment is planned for completion in Q3 2026. With a structured payment schedule, the initial $43 million has already been received. Over the 36-month service period, the company will recognize approximately $21 million in revenue per quarter.

In June 2026, the company signed another $25.9 million long-term deployment contract for Blackwell and Grace Blackwell, covering both inference infrastructure and simulation platform scenarios. $12.9 million has been received as an upfront payment.

In July 2026, the company's Build business line secured additional long-term AI infrastructure contracts totaling over $1.3 billion for five years from the US and Europe, far exceeding its annual target of $1 billion in signed contracts. Project prepayments will be received in Q3 2026, with continuous revenue recognition officially starting from the end of Q4 2026. Once all clusters are fully operational, the corresponding annual recurring revenue will exceed $384 million. Company management states that current market demand is strong, and related revenue will be included in the 2027 annual recurring revenue, continuously opening up medium to long-term growth space.

2. Re-understanding Axe's Build Compute Business

The best comparison is CoreWeave — one is the leader in centralized training, the other is a new force in global hybrid compute:

CoreWeave follows an asset-heavy, centralized approach, deeply penetrating the training scenario. It operates 49 large-scale AI data centers in North America and Europe, possessing approximately 250,000 high-end GPUs. Leveraging InfiniBand high-speed interconnects and Kubernetes-native orchestration, it builds single-site, 10,000-card-level training clusters, offering extreme performance for ultra-large-scale distributed training, suitable for trillion-parameter training by top AI labs like OpenAI, Meta, and Microsoft. Listed on Nasdaq in March 2025, it received an additional $2 billion strategic investment from NVIDIA in January 2026, becoming a benchmark enterprise in dedicated AI compute cloud (Neo-Cloud). However, with all data centers concentrated in North America and Europe, network latency of 80-150 milliseconds for intercontinental transmission, combined with data residency compliance requirements in various countries, keeps CoreWeave out of many regional markets like Asia-Pacific, the Middle East, and Latin America.

Axe Compute follows a hybrid, distributed, global coverage route. On one hand, it leverages the Aethir distributed compute network to integrate global third-party data center resources, deploying over 200 compute nodes across 93 countries, providing access to a total of over 435,000 GPUs. On the other hand, it is aggressively expanding its asset-centric new cloud business worth over $1 billion. This enables it to enter the large-scale customized compute market, serving all types of GPU buyers and AI companies.

3. Financial Analysis

Axe Compute's First Quarter Financial Results Ended March 31, 2026

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As of March 31, 2026, the company held $6.9 million in cash and cash equivalents, $20.2 million in ATH digital asset holdings (approximately 2.83 billion tokens), and $9.4 million in current digital asset receivables, totaling a liquidity pool of approximately $36.5 million. Management believes this is sufficient to support the company's operations through fiscal year 2026 and beyond.

Revenue for the first quarter of 2026 was $35,000, compared to $110,000 in the first quarter of 2025. Sales in the first quarter of 2026 were primarily from the legacy drug discovery service segment, with the compute services segment contributing only $7,000. According to company disclosures, the $43 million upfront payment for the major B300 contract was received in May, and an additional $25.9 million long-term Blackwell contract was signed in June, but neither has yet been converted into income statement revenue.

Once the $260 million dedicated cluster goes live in the third quarter, the company can recognize approximately $21 million in compute revenue in a single quarter, which is 600 times the total revenue of the first quarter. Assuming the $1.3 billion order goes live in the fourth quarter, quarterly revenue could increase by another $65 million to $86 million, representing a sequential quarterly growth of over 400%.The company is at the explosive critical point of transitioning from tens of thousands in quarterly revenue to hundreds of millions. Current market pricing has not yet fully reflected the certainty of this step-change revenue jump.

Net loss for the first quarter of 2026 was $7.7 million. The net loss included a non-cash mark-to-market loss of $4.3 million on the company's ATH digital asset holdings. As of March 31, 2026, accounts receivable were $659,000, compared to $32,000 as of December 31, 2025. The significant increase in both accounts receivable and contract liabilities during the quarter reflects the monthly prepayments required from Compute Services customers after projects went live at the end of the first quarter.

Axe Compute CEO Christopher Miglino stated: "Our goal for this year was to sign contracts worth $1 billion. The signing of the July contracts has us far exceeding that target... We believe signing an additional $2 billion in contracts this year is not out of reach, which will help boost next year's Annual Recurring Revenue (ARR)." Based on his public statements in the first half of the year,Axe Compute currently has potential business orders exceeding $4 billion, has signed over $1 billion in contracts, and aims to sign a total of $3 billion in contracts this year.

4. Valuation Analysis

• Model 1: FY2026E Forward Price-to-Sales (P/S)

Estimation of Annual Revenue

Below are the confirmed orders officially released. Based on these contracts, the confirmed revenue for FY2026 is estimated to be approximately $125 million.

Analysts' revenue estimates for AGPU in 2026 average $163,935,524, with a low estimate of $157,505,455 and a high estimate of $168,752,872. For 2027, these figures reach $254,372,663, with a low of $244,405,017 and a high of $261,853,600. Our conservative estimate based on confirmed revenue is currently around $125 million.

CoreWeave's Forward P/S is approximately 3.88x. Axe Compute's actual confirmed revenue for 2026 is approximately $125 million. Total shares outstanding is 11.385 million, current price is $6.85.

Axe Market Cap = $125 Million × 3.88 = $485 Million

Corresponding Target Price: $485 Million ÷ 11.385 Million Shares ≈ $42.60/Share

Potential Upside from Current Price: $42.60 ÷ $6.85 ≈ 6.21x

• Model 2: P/ARR (Forward Scenario Estimation)

P/ARR (Market Cap to Annual Recurring Revenue ratio) is a common steady-state valuation metric in the compute infrastructure industry, well-suited for business models centered on multi-year locked-in compute contracts. It better reflects the intrinsic value of a company's long-term stable cash flows. This analysis uses the industry leader CoreWeave's P/ARR valuation center of approximately 2.4x in July 2026 as a fair pricing benchmark for a mature compute service provider.

To date, the forward steady-state annualized recurring revenue (ARR) from all of the company's Build business long-term orders in hand can reach $384 million.

Axe's Forward Reasonable Total Market Cap = $384 Million × 2.4 = $921.6 Million

Corresponding Target Price = $921.6 Million ÷ 11.385 Million Shares ≈ $80.94/Share

Potential Upside from Current Price: $80.94 ÷ $6.85 ≈ 11.8x

Based on a combined calculation, Axe's stock price has an upside potential of 6-11x, and its current market value is severely undervalued. The above calculations did not apply a valuation discount for differences in business scale and development maturity between the two companies, so the actual reasonable valuation center may have room for downward adjustment.

From a cross-industry horizontal comparison, there is a significant mismatch between AGPU's current market pricing and its business scale and growth potential. As of now, the company's market cap is only about $80 million, while based on signed long-term contracts, its guided ARR has reached $384 million, corresponding to a P/ARR of just 0.2x. In comparison, peers Nebius, CoreWeave, IREN, and WhiteFiber have P/S on ARR ratios of 6.9x, 2.4x, 4.0x, and 10.4x, respectively. Even considering that AGPU is still in its early commercialization stage and revenue recognition rhythm hasn't fully ramped up, its valuation level remains far below the industry average. As the B300 dedicated cluster and subsequent contracts worth over $1 billion contribute revenue gradually in the second half of 2026, the company's ARR is expected to materialize quickly next year, and the current extremely low valuation multiple provides investors with significant margin of safety and upside flexibility.

3. Capital Model Design of AI x Crypto: The "Compute + Treasury" Dual Engine Flywheel Model

Beyond the surprisingly strong Compute business, AGPU also possesses a highly imaginative flywheel model, namely the ATH Treasury strategy. Unlike pure BTC or ETH treasury companies that simply hoard tokens, ATH is placed within a company body whose related business generates positive cash flow. Compute orders directly drive ATH demand and settlement, while Treasury appreciation, in turn, fuels Compute expansion. The two are mutually causal, synergistically resonating, forming a self-reinforcing positive flywheel.

1. What are ATH and Aethir?

The Aethir Network is a decentralized physical infrastructure network developed by the Panama-based foundation company DCI Foundation ("DCI"). The Aethir Network aggregates enterprise-grade GPUs contributed by independent data centers, enterprises, and other