The Nasdaq Composite jumped 1.60% to close at 25,466.19 on Wednesday as CoreWeave reported third-quarter revenue of $3.66 billion that revived optimism across the artificial intelligence sector.
CoreWeave posted a 168% increase in revenue compared to the same period a year prior, topping analyst expectations of $3.56 billion as reported by InvestorPlace. The neocloud provider also recorded a net loss of $709 million alongside net interest expense of $846 million, according to 24/7 Wall St.
Contracted revenue backlog swelled to $132.5 billion, up from $104 billion in June. Management raised its full-year revenue forecast for 2026 to a range of $13 billion to $13.3 billion, RealMoney Pro noted.
CoreWeave $CRWV CEO Michael Intrator, asked on CNBC why it isn't buying back bonds yielding ~15%, said: "I can deploy the capital at a higher rate of return." Jim Cramer pressed whether it can really earn over 16%. Intrator also said he canceled his 10b5-1 stock trading plan.
Adjusted operating income guidance climbed to a range of $1.275 billion to $1.375 billion, surpassing expectations from Visible Alpha.
To fund its infrastructure buildout without relying on unsecured debt at current yields, CoreWeave is shifting toward customer prepayments and contract-backed credit facilities. The company expects to collect about $9 billion in customer prepayments and deposits over the next three months, including more than $3 billion tied to signing new customer contracts for built capacity that requires no further hardware spending.
BREAKING: CoreWeave stock, $CRWV, surges over +16% after posting stronger than expected earnings due to AI. Nasdaq 100 futures extend gains to +1.5% on the day. pic.twitter.com/3JwUmWRssb
“We will not use the unsecured debt market to fund our business at current yields, nor do we need to,” CoreWeave CEO Michael Intrator said to analysts on the earnings call. Management said expectations to raise a new investment-grade-rated loan yielding between 7% and 7.5%.
In August, CoreWeave closed a $2.6 billion loan designated as DDTL 5.5, which is its first loan designed specifically for shorter-term customer contracts and lets the company borrow in installments as money is needed.
CoreWeave ($CRWV) says qualified AI demand is 10x its available capacity through 2027. CEO Michael Intrator says the company is holding back future capacity as pricing keeps rising.https://t.co/UI1mu1S6jd
“We are also allocating more capacity to short-term opportunities, where the pricing justifies it, selling capacity at more than $40 million per megawatt annually, while pricing for new infrastructure on four and five-year contracts is moving to $20 million to $25 million per megawatt,” Intrator said.
Eric Jackson, founder of EMJ Capital, said in a post on X that management laid out a second economic life for its GPU fleet with 130,000 GPUs coming off contract in 2027. Joe Tigay, portfolio manager of the Rational Equity Armor Fund, said that the report gives investors more confidence that customer demand is translating into actual revenue.
The strong earnings report helped a recovery across technology equities following a steep sell-off earlier in the week driven by inflation concerns and an inflation report that Chicago Federal Reserve President Austan Goolsbee said on PBS NewsHour was “It's another distressing report — borderline disturbing.” Nvidia rebounded 2.87% on Wednesday, November 11, closing at $173.73 with trading volume reaching 266.6 million shares, which was more than double its three-month daily average of 129.6 million shares.
Advanced Micro Devices surged 7.32% to $552.90, and Broadcom gained 3.99% to $345.22. Fellow neocloud provider Nebius Group rose 13% to trade at $152, Proactive financial news reported.
Strong day across the AI trade as CoreWeave's earnings lifted sentiment:$CRWV +24% – Best since June '25$MU +15% – Best since July SK hynix +11%$ORCL +10%$NVDA +4% Anthropic's pre-IPO perp on @liquidtrading also rose 8% to an implied $1.82T valuation amid strong IPO demand pic.twitter.com/4EQQZ6vPvT
XTB Kathleen Brooks said to sustained demand for AI stocks alongside enthusiasm over artificial intelligence lab Anthropic’s initial public offering, which was confirmed for November 18 with a planned offering of 825 million shares that could value the five-year-old company at up to $1.4 trillion.
“The sentiment bump coming from CoreWeave results and Anthropic IPO demand is helping the broader ecosystem,” Ross Mayfield, an investment strategist at Baird Private Wealth Management, told CNBC.
The S&P 500 advanced 1.31% to close at 7,619.38, and the Dow Jones Industrial Average gained 254.60 points, or 0.49%, to finish at 52,486.49.
Earlier coverage: CoreWeave Shares Rally 17% Boosting Nasdaq Futures
