CoreWeave, Nebius and Supermicro shares jumped after separate earnings reports pointed to strong demand for AI computing infrastructure. CoreWeave's revenue doubled and Nebius topped Wall Street estimates, while Supermicro's results lifted Nvidia along with it.
CoreWeave stock surged 18% on Wednesday after the company reported that second-quarter revenue doubled, driven by hyperscaler demand for its AI compute capacity. Nebius and Supermicro posted similar gains the same day on their own earnings, adding to a broad rally across AI infrastructure stocks.
CoreWeave doubles revenue, guides higher
CoreWeave's second-quarter revenue came in at $2.6 billion, up 112% from $1.2 billion a year earlier. The company guided for third-quarter revenue of between $3.4 billion and $3.6 billion, and its revenue backlog stood at $104 billion as of June 30, not counting $25 billion in new third-quarter customer commitments.
But the company still isn't profitable. Operating expenses more than doubled to $2.6 billion, leaving CoreWeave with an operating loss of $49 million, compared with operating income of $19 million a year earlier. According to CNBC: "Overall, this was one of the cleaner quarters we've seen from CoreWeave since the IPO" Citi analysts wrote in a note, adding that shares should move higher on improving profitability.
Nebius beats on revenue and narrows its loss
Nebius reported a smaller-than-expected loss of 68 cents per share on a GAAP basis, versus a $2.05 per-share loss a year earlier, while analysts had projected a 72-cent loss. Revenue jumped 454% to $582.3 million, beating the $570 million Wall Street had modeled. Adjusted EBITDA rose to $236 million from a $21 million loss a year earlier, above the $169 million analysts had expected.
The company rents servers equipped with Nvidia AI accelerators, and Nvidia disclosed in July that it holds a 9% stake in Nebius. Its stock rose nearly 20% to 231.84 in morning trading Wednesday.
Supermicro's report lifts Nvidia too
Supermicro stock jumped more than 13% to 35.85 after its Q2 earnings report. Nvidia climbed more than 2% to 222.91 the same day, as analysts said Supermicro's results serve as a positive read-through for Nvidia, since Supermicro builds complete server racks around Nvidia's chips.
At least 10 analysts raised their price targets on Supermicro after the report, though only two of them rate the stock a buy; the rest hold neutral or sell ratings. The report was also seen as positive for rivals Dell Technologies and Hewlett Packard Enterprise.
Sources: CNBC, Investor's Business Daily, Investor's Business Daily
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