AI infrastructure stocks jumped on Wednesday after blowout earnings from Supermicro, CoreWeave and Nebius Group, pulling Nasdaq-listed hardware and memory names higher across the board. The rally extended into optical component makers and the memory and storage complex as the broader earnings season kept beating expectations.
Nebius Group shares surged 22.39% after the company posted quarterly revenue that topped analyst expectations. CoreWeave stock climbed 18.66% after the AI cloud provider posted quarterly results highlighting accelerating demand and a surging backlog.
Supermicro's forecast lifts hardware peers
Supermicro reported fourth-quarter results that beat analyst expectations on earnings. Its upbeat forecast then sent shares higher by more than 6%. Neocloud and AI hosting players Applied Digital and IREN moved higher as well. Signs of accelerating demand for computing power, AI server racks and liquid cooling technology sent the entire AI infrastructure complex higher as companies within the space reported results.
Optical and memory names join the rally
Lumentum stock gained after the maker of optical and photonic products for data centers posted fiscal fourth-quarter revenue that more than doubled to $1.01 billion. Peers Coherent and Ciena both jumped alongside it. The memory and storage complex also rose, with the Roundhill Memory ETF (DRAM) up 4%. Sandisk also rose 4%, and memory maker Micron jumped 4% along with rival SK Hynix.
Earnings season keeps beating estimates
Investors have kept backing the "picks and shovels" trade as companies forecast strong demand for the infrastructure needed to support AI adoption. Fundstrat noted Wednesday that, among S&P 500 companies that have reported this earnings season, 87% have beaten estimates, with those that beat exceeding expectations by a median of 7%.
Source: Yahoo Finance
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