CoreWeave revenue jumps 600% to $1.3B, Nebius grows 80%

CoreWeave stock surged 12% after the AI data center specialist reported a 600% revenue jump to $1.3 billion in its latest quarter, outpacing forecasts. The company, which leases GPU-powered servers to tech giants, said demand from cloud providers and AI startups drove the spike. Earnings came as CoreWeave prepares for its blockbuster $12 billion merger with a blank-check company, expected to close by year-end.

The surge reflects a gold rush in AI infrastructure. Big Tech is splurging on chips and cooling systems to power generative AI, and CoreWeave—one of the few public AI hosting firms—has become a bellwether. Rival data center rivals like Equinix and Digital Realty are also racing to expand, but CoreWeave’s rapid growth signals how critical AI workloads are becoming. Analysts warn that while revenue is booming, profitability remains elusive as competition heats up.

Nebius, a lesser-known AI cloud provider, also reported earnings this week, showing 80% revenue growth to $450 million. The company, which operates data centers in Europe and Asia, cited surging demand from European AI labs and Asian enterprises. Meanwhile, tech stars Lumentum and Applied Materials—suppliers of lasers and chipmaking gear—are due to report earnings next week. Lumentum’s fiber-optic components are critical for AI data centers, while Applied Materials’ gear is essential for semiconductor production. Both stocks have been volatile as investors bet on whether AI demand will keep growing.

What happens next could reshape the tech landscape. If earnings confirm that AI infrastructure demand remains strong, more firms will rush to build data centers, straining power grids and supply chains. But if growth slows, companies like CoreWeave could face a reckoning. The coming months will show whether the AI boom is sustainable—or just another speculative bubble.