CoreWeave's Q3 report beat forecasts and lifted its full-year revenue guidance, and memory chip suppliers Micron and Sandisk rose in response on Wednesday. The Motley Fool ties the gains to CoreWeave's planned capital spending, part of which would go to memory chips.
Micron shares rose 11.46% to $808.22 as of 10:37 AM ET on Wednesday, after AI cloud provider CoreWeave posted a strong earnings report Tuesday night. Sandisk gained 14.63% to $985.76 at the same time. CoreWeave stock itself was up 21.5% as of 10:35 a.m. ET.
CoreWeave beats on earnings and revenue
CoreWeave lost $1.27 per share in Q3, less than feared, while revenue of $3.66 billion came in above expectations. The company also raised its full-year 2026 revenue guidance to a range of $13.0 billion to $13.3 billion.
The Motley Fool calls capital spending the part most relevant to investors. CoreWeave promised to spend $37 billion to $39 billion on capital investment, more than expected. According to the Motley Fool, the more CoreWeave spends, the more it will spend on memory chips from Micron to outfit its data centers, which makes the forecast bullish for Micron's revenue.
What it means for Micron and Sandisk
The Motley Fool also points to CoreWeave's ability to pay for those chips. CoreWeave predicted an annual revenue run rate of $20 billion to $21 billion as it exits 2026, and said it will earn at least "adjusted" profits by early 2028.
Sandisk follows the same logic. The Motley Fool's Sandisk report says more CoreWeave spending on capital investment means more money sent Sandisk's way for memory chips. Sandisk was up 13% as of 10:10 a.m. ET.
The Motley Fool notes Micron trades at less than 10x trailing earnings and barely 4x forward earnings. It puts Sandisk at less than 7x trailing earnings and less than 4x forward earnings.
Sources: The Motley Fool (Micron), The Motley Fool (Sandisk)
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