CoreWeave's report sparked a rally in the cloud computing sector. Nebius shares are up 15%

Shares of so-called non-cloud companies are rising steadily in premarket trading on November 11 following CoreWeave’s strong quarterly report. CoreWeave’s stock jumped 17%. Shares of Mebius, which is set to release its quarterly report on November 12, rose 15%. And IREN shares gained 7%.

CoreWeave was able to reassure investors in its quarterly report regarding demand for AI infrastructure, according to Guru Focus. The positive reaction to the company’s earnings release also helped Nasdaq 100 index futures rise 1.9% ahead of the start of the main trading session, offset by investors’ concerns over the risk of a Fed rate hike following the release of fresh inflation data, Bloomberg reports.

CoreWeave reported quarterly revenue of $3.66 billion, representing a 168% year-over-year increase, and a backlog of $132.5 billion. In addition, the company raised its full-year revenue forecast to $13–13.3 billion, exceeding analysts’ expectations.

These results helped the cloud computing sector recover from the recent sell-off. “It appears that overnight, the market felt a little more comfortable about investing in artificial intelligence. CoreWeave posted very strong results, and the Korean market was also quite strong overnight,” noted Roger Lee, head of equity strategy at Cavendish.

Data from CoreWeave confirmed that actual customer demand for computing power remains high, which has had a positive impact on the entire market. However, the company’s massive debt burden of $46.9 billion remains a key concern, notes Guru Focus.

This article was AI-translated and verified by a human editor