Nebius Jumps 34%, CoreWeave Gains 20% on AI Cloud Earnings Beat
Updated
Updated · Yahoo Finance · Aug 14
Nebius Jumps 34%, CoreWeave Gains 20% on AI Cloud Earnings Beat
3 articles · Updated · Yahoo Finance · Aug 14
Summary
Nebius shares surged 34% and CoreWeave nearly 20% after both AI cloud infrastructure providers posted earnings that impressed Wall Street this week.
Q2 demand drove the rally: Nebius revenue soared 454% year over year, while CoreWeave said its revenue backlog reached $104 billion, excluding more than $25 billion in new early-Q3 commitments.
CoreWeave also pushed back on a key bear case, saying Nvidia A100 GPUs released in 2020 now have a useful life of at least 9 years, implying lower depreciation than many analysts expected.
Both companies are positioning for further growth through early access to Nvidia's next-generation Vera Rubin systems, and Q2 contracts carried margins 5% to 10% above prior quarters.
With severe grid delays, how will neoclouds actually power their multibillion-dollar AI factories before the next hardware cycle renders them obsolete?
If AI chips now last nine years, will NVIDIA's new secondary market turn GPUs into the ultimate financial collateral for Wall Street?
Could the unexpected nine-year durability of older AI chips secretly threaten the explosive adoption rate of NVIDIA's upcoming Vera Rubin architecture?