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πŸš€ Resilient Trader Trade Idea: The AI Infrastructure Breakout on WhiteFiber (WYFI)

Regular people are starting to trade like institutional traders, and they're making a living doing it. But not everyone is successful with their trades. There is a right way and a wrong way. I'm here to help you come up with vetted trade ideas so you actually make money off your trading.

Resilient Trader

Resilient Trader is where smart traders come for vetted ideas.

Every week, we cut through the noise and surface opportunities that institutions are already eyeing, but with strategies tailored for retail traders.

Today’s setup? A fresh IPO in the hottest sector of the market, trading at a discount while the AI infrastructure boom is just getting started.

We’ll cover:

  • Why WhiteFiber is a buy at current levels

  • How to capitalize on the AI infrastructure wave with defined risk

πŸ” Trade Thesis: WYFI Is Your Ticket to the $499B AI Infrastructure Gold Rush

WhiteFiber (WYFI) went public at $17, but the market handed us a gift it’s now trading at $16.19. This weakness post IPO is an opportunity.

Behind the scenes:

πŸš€ Pure-play AI infrastructure - direct exposure to the fastest-growing tech sector

πŸ“ˆ Revenue explosion - 105% YoY growth in Q1 2025, 374% historical growth rate

πŸ’° Market timing - IPO during the $499B AI infrastructure boom (26.6% CAGR)

πŸ“Š The Fundamentals Are Firing

πŸ’° Revenue: $59.77M TTM, up 16.8% from $51.18M
πŸ“ˆ Growth Rate: 105% YoY quarterly growth - explosive
πŸ† Business Model: GPU cloud services + Tier-3 colocation for AI/ML workloads
🌍 EBITDA: $17.01M - positive cash generation
πŸ“ Gross Margin: 41.7% - healthy for cloud infrastructure

πŸ“ Valuation Screams Value

πŸ“‰ Revenue Multiple: 10.3x vs. CoreWeave’s 12x

🎯 Market Cap: ~$619M vs. CoreWeave’s $23B+

πŸ“Š Growth Stage: Earlier stage = higher percentage upside potential

🏷️ IPO Discount: 10.9% below IPO price

🧭 Technical Setup:

βœ… Too early for technicals

βœ… Trading below IPO price - institutional value zone

βœ… Limited downside as investment bank needs to support post IPO

🎯 Price Targets:

  • $17 (short term IPO level) - 12% upside

  • $20 (intermediate) - 32% upside

  • $25 (52-week high) - 65% upside

πŸ’₯ Trade of the Week: The AI Infrastructure Breakout Play

🟒 Trade Setup:

πŸ›‘οΈ Options Play (When Available Options will be Available in a few weeks, Typically 30 days after IPO):

  • Target 40 delta calls

  • At least 9 months out

  • Leverage the AI infrastructure growth story

    Email us if you need an option recommendation when the options come out in a few weeks.

πŸ“ˆ Risk-Reward

  • Entry: $16.19

  • Stop Loss: $13.50 (below key support)

  • Target 1: $17 - 12% upside

  • Target 2: $20 - 32% upside

  • Target 3: $25 - 65% upside

πŸš€ Catalysts to Watch

  1. AI infrastructure boom - $499B market growing at 26.6% CAGR

  2. Options launch - typically 30 days post-IPO

  3. Analyst coverage - Wall Street discovery and Buy rating initiations

  4. Quarterly earnings - continued triple-digit growth

  5. Institutional buying - smart money stepping in

πŸ›‘ Risk Management Tip

Set a stop-loss at $13.50 to protect against a break below support while allowing room for normal volatility.

🧠 Final Thoughts

WYFI is a rare opportunity to buy a pure-play AI infrastructure company at a discount to its IPO price while the sector is exploding. This is a great long term hold.

From the explosive revenue growth to the attractive valuation and massive market tailwinds, this trade setup has all the ingredients for a profitable long position.

βœ… Buy WYFI at $16.19
πŸ’Έ Target 40 delta calls 9+ months out (when options launch)

We’ll be watching this one closely as it breaks out from these levels.

πŸ‘‰ Want more trade ideas like this - plus weekly options plays and deep-dive breakdowns?

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- The Resilient Trader


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