Neocloud stocks are rallying Wednesday after a pair of blowout earnings reports from sector leaders CoreWeave Inc. (NASDAQ:CRWV) and Nebius Group N.V. (NASDAQ:NBIS) reinforced the scale of AI infrastructure demand.
- CRWV stock is racing higher. See the real-time price action here.
CoreWeave posted second-quarter revenue of $2.58 billion late Tuesday, up 112% year-over-year and ahead of the $2.56 billion analysts had expected. Revenue backlog jumped to $104 billion, nearly triple the year-ago figure, and management raised full-year guidance to $12.4 billion-$13.2 billion.
Nebius followed Wednesday morning with its own beat. Revenue came in at $582.3 million, a 454% jump from the year-ago quarter and above the roughly $574 million consensus estimate. Adjusted EBITDA turned positive at $236.2 million, versus a loss in the same period last year.
Shares across the neocloud trade are higher Wednesday:
- CoreWeave: up 18.2%
- Nebius Group: up 15.67%
- IREN Limited (NASDAQ:IREN): up 8.01%
- Hut 8 Corp. (NASDAQ:HUT): up 7.57%
- Applied Digital Corp. (NASDAQ:APLD): up 7.7%
- Core Scientific Inc. (NASDAQ:CORZ): up 7.24%
- Cipher Mining Inc. (NASDAQ:CIFR): up 6.04%
- Galaxy Digital Inc. (NASDAQ:GLXY): up 5.22%
- TeraWulf Inc. (NASDAQ:WULF): up 4.9%
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Neoclouds are cloud providers built specifically around renting out graphics processing units for artificial intelligence work, rather than offering the sprawling menus of services sold by traditional hyperscalers like Amazon.com Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT) or Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).
The model, often called GPU-as-a-service, gives AI labs and enterprises fast access to Nvidia Corp. (NASDAQ:NVDA) chips without the capital burden of building data centers from scratch.
Several names in the group, including IREN, Applied Digital, TeraWulf, Core Scientific, Cipher Mining and Hut 8, started as Bitcoin (CRYPTO:BTC) miners before converting their power infrastructure toward AI hosting as GPU demand outpaced crypto economics.
The Takeaway
The two earnings reports matter beyond the individual companies. CoreWeave and Nebius sit at the center of a debate over whether hyperscalers will eventually build enough of their own capacity to sideline third-party GPU providers.
Wednesday’s numbers argue the opposite is happening for now — demand keeps outrunning supply, and both companies described near-term capacity as effectively sold out.
Risks remain heavy on both balance sheets. CoreWeave’s net loss widened to $626 million in the quarter as interest expense climbed to $640 million on rising debt loads, while Nebius swung to a $190.4 million net loss from continuing operations, partly reflecting a prior-year investment gain that did not repeat.
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Photo: Minh8686 / Shutterstock
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