CoreWeave jumps 4.7%, Nebius gains 2% as specialist cloud stocks recover
Key Facts
Shares of specialist AI cloud companies rose on October 27, with CoreWeave up 4.7% and Nebius gaining 2%, according to a report published by Invezz. The report pointed to renewed interest in technology stocks after recent weakness, while concerns remained about the companies’ debt levels and their ability to continue spending on infrastructure. The move followed a session marked by sharp swings in CoreWeave shares and a sector sell-off on Monday after Elon Musk warned of possible difficulties for specialist cloud companies. The two stocks recovered by different amounts, with CoreWeave’s gain more than twice Nebius’s. Prices at the previous close remained below their October 20 levels, putting the rebound in the context of a partial recovery from recent losses.
EL7 data showed CoreWeave closed at $55.19 on October 26, compared with $62.13 on October 20. Nebius closed at $153.27 on October 26, versus $171.45 six days earlier. The comparison sets the October 27 gains against a preceding downward trend, without by itself indicating that losses recorded over the period have been recovered. Monday’s session was itself volatile for CoreWeave: the stock quickly fell 5.5% after trading began, then turned to a gain of 6.6% before settling at a rise of 1.8%, the Associated Press reported. The agency said AI company shares continued to swing amid concern about the rising cost of borrowing to build data centers and buy AI chips.
Sector shares fell on Monday before the rebound after Musk warned of possible mergers and failures, according to a Reuters report carried by MarketScreener. Nebius fell 4% that day, while CoreWeave dropped 1.6% and IREN fell 1.5%. Invezz then reported that Musk warned more than 200 companies in the specialist AI cloud sector could face severe difficulties. The warnings reflect concerns about companies’ ability to finance rapid infrastructure expansion, while projected revenue depends on the scale of demand for computing. Invezz wrote that the companies recovered some of their losses despite concern over debt and the spending needed to expand capacity.
Specialist cloud companies build and lease computing infrastructure tailored to AI workloads, including access to graphics processing units, to companies that develop and deploy models, according to Invezz. Expanding this capacity requires substantial financing, making borrowing and investment commitments central to assessments of the sector alongside revenue growth. In its second-quarter 2026 results, CoreWeave reported revenue of $2.575 billion, up from $1.212 billion in the same period of 2025, but recorded a net loss of $626 million. The company also said its remaining performance obligations totaled about $104 billion as of June 30, excluding more than $25 billion in new customer commitments added at the start of the third quarter. These figures show both business growth and the scale of future commitments, alongside the continued net loss.
CoreWeave’s contracting indicators suggest prices for some new capacity have risen, while shorter contract terms remain a factor in assessing demand. The company said that during the third quarter of 2026 it signed short-term computing contracts lasting about three to six months, priced at about $40 million per megawatt on an annualized revenue basis. On the financing front, Nebius announced on October 22 that it had secured a $3.5 billion secured financing facility from Citi to support the expansion of its global capacity. Its results showed second-quarter revenue rose to $582.3 million from $105.1 million in the same period of 2025. These developments put revenue growth and financed expansion at the center of the sector’s outlook, alongside concerns about debt and investment costs that have accompanied stock volatility.