The CoreWeave and Super Micro surge reflects strong earnings forecasts and surging global demand for high-performance AI data center hardware.
Shares of AI infrastructure providers CoreWeave (CRWV) and Super Micro Computer (SMCI) rallied to multi-month highs on Wednesday. The surge followed upbeat revenue forecasts from both companies, signaling sustained market demand for compute capacity.
Both companies have capitalized on the relentless demand for AI infrastructure, driven by data center operators rapidly expanding hardware capacity to power generative AI workloads.
Shares of AI cloud provider CoreWeave surged over 19%, while peer Nebius Group jumped 23% after topping quarterly revenue expectations. Server manufacturer Super Micro Computer also gained over 13%.
Shares of data center operators Applied Digital (APLD) and IREN Ltd (IREN) also gained, rising 4% and 8% respectively, while Dell Technologies (DELL) advanced 5%.
If these gains hold, CoreWeave is on track to add approximately $8 billion to its market capitalization, while Super Micro Computer could gain over $2 billion. Following the strong updates, more than seven brokerages raised their price targets on both companies.
CoreWeave raised its full-year guidance for revenue, adjusted operating profit, and capital expenditures. Surging demand for its Nvidia-powered AI infrastructure has left near-term capacity effectively sold out, allowing the company to command premium pricing on new contracts.
CoreWeave raised its full-year guidance for revenue, adjusted operating profit, and capital expenditures. Surging demand for its Nvidia-powered AI infrastructure has left near-term capacity effectively sold out, allowing the company to command premium pricing on new contracts.
According to CEO Michael Intrator, CoreWeave’s near-term computing capacity is effectively sold out. This high demand gives the company immense leverage to secure new compute agreements on increasingly favorable terms.
The company’s revenue backlog climbed to $104.2 billion in the second quarter up from $99.4 billion three months prior. That figure excludes more than $25 billion in additional commitments secured early in the current quarter.
While higher capital expenditure guidance might unnerve some investors, MoffettNathanson analysts noted that strong market pricing indicates project returns are improving even as unit costs climb.
Tech giants have sharply escalated capital expenditures to drive the AI boom, taking on massive corporate debt to fund the expansion. In response, financial markets are seeing a surge in credit default swaps and hedging instruments to protect against default risk among heavily leveraged “hyperscalers”.
See also: Inside the Executive Power Shifts That Drove Google’s Major AI Overhaul
Major U.S. financial institutions are also moving to capitalize on the AI data center buildout. Bank of America pledged $250 billion for domestic infrastructure financing through July 2027, following a similar multi-billion-dollar commitment from Morgan Stanley.
Super Micro Computer issued a 2027 revenue forecast above Wall Street expectations, pointing to sustained enterprise demand for AI servers. Profitability also rebounded sharply, with fourth-quarter gross margins reaching 17.5% far surpassing the company’s preliminary guidance of 15%–17% and its initial target of 8.2%–8.4%.
