CoreWeave's stock jumped 18% in premarket trading after second-quarter revenue doubled to $2.6 billion on surging AI compute demand. The company still posted an operating loss, but Citi analysts called it one of CoreWeave's cleanest quarters since its IPO.
CoreWeave shares were up 18% in premarket trading on Wednesday after the AI cloud company reported that second-quarter revenue doubled. The gain builds on a run that has already put the stock up 26% since the start of the year as of Tuesday's close.
The company, which rents out high-powered computing capacity for AI workloads, reported second-quarter revenue of $2.6 billion, up 112% from $1.2 billion a year earlier. It is guiding for third-quarter revenue of between $3.4 billion and $3.6 billion.
Growth still comes at a cost
CoreWeave remains unprofitable. Operating expenses rose to $2.6 billion from $1.2 billion a year earlier. That left the company with an operating loss of $49 million, compared with operating income of $19 million a year earlier. For the full year, CoreWeave forecasts revenue of $12.4 billion to $13.2 billion and adjusted operating income of $960 million to $1.15 billion.
Even so, demand signals strengthened. CoreWeave's revenue backlog stood at $104 billion as of June 30. That figure doesn't include $25 billion in new customer commitments for the third quarter.
The quarter's new customers included Bentley Systems, Grammarly, Isomorphic Labs and Sunday Robotics. CoreWeave also committed $1 billion in strategic investments with Jane Street. Meta, meanwhile, said it would spend an additional $21 billion with CoreWeave during the quarter.
Analysts see a 'cleaner' quarter
According to CNBC: "one of the cleaner quarters we've seen from CoreWeave since the IPO", Citi analysts wrote in a note Wednesday. They pointed to stronger pricing power, growing demand for CoreWeave's software and tokens business, and better-than-expected margins as signs of a more confident execution story.
The results landed alongside gains across the broader neocloud sector. Nebius was up 9.7% in premarket trading ahead of its own earnings later Wednesday. The stock has risen more than 150% over the past 12 months.
Supermicro was also up around 9% in premarket trading. It had just reported more than $60 billion in new orders over the past year.
Source: CNBC
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