Cloud Computing Stocks Jump as Much as 11.8% After Strong CoreWeave Results
Key Facts
Shares of AI-linked cloud computing companies rose in premarket trading on Wednesday, November 11, after CoreWeave reported third-quarter results that eased investor concerns about excessive AI spending. Nebius, IREN, Oracle and Applied Digital gained between 4.7% and 11.8%, according to Reuters. CoreWeave shares also jumped about 25% during the session after the company posted a quarterly loss smaller than analysts expected, according to The Associated Press. The company reported its results on November 10 for the three months ended September 30. The market’s positive response came as questions grow about the scale of investment needed to expand computing capacity and companies’ ability to turn demand into profits.
CoreWeave’s third-quarter revenue was $3.661 billion, compared with $1.365 billion in the same period of 2025, while operating income rose to $207 million from $52 million. Revenue growth accelerated sequentially to 42% in the third quarter, after reaching 24% in the second quarter, according to Reuters. By contrast, the net loss widened to $709 million from $110 million a year earlier, and diluted loss per share was $1.27. The figures show an expanding operating business alongside continued losses, making growth alone insufficient to assess the company’s performance. The results eased concerns about spending and demand, but did not remove profitability from investors’ calculations.
The company raised its 2026 revenue forecast to a range of $13.0–$13.3 billion and lifted its adjusted operating income forecast to $1.275–$1.375 billion. The increase in the midpoint of its adjusted operating income forecast represents 26% compared with previous guidance, CoreWeave said. In terms of operating capacity, the company added more than 200 megawatts during the quarter, taking active capacity above 1.7 gigawatts. It also increased contracted capacity by more than 900 megawatts to above 4.6 gigawatts. The company said it expects active capacity to exceed 1.85 gigawatts by the end of 2026, while targeting a revenue run rate of between $20 billion and $21 billion at year-end.
The expanded outlook came alongside major spending and financing plans: CoreWeave raised its 2026 capital expenditure estimate to $37–$39 billion. The company expects interest expense of between $1.05 billion and $1.15 billion in the fourth quarter, highlighting the cost of financing its expansion. As of September 30, its contracted and expected revenue backlog stood at about $132.5 billion. Chief Executive Michael Intrator said the company expects about $9 billion in customer prepayments and deposits during the three months following the results announcement. CoreWeave also said it does not intend to tap the unsecured debt markets and that cash flows from existing contracts will cover repayment of current and future debt.
Reuters noted that shares of specialized cloud computing companies, excluding Nebius, fell between 32% and 48% from the start of the year through Tuesday’s close on November 10, while Nebius rose 60% over the same period. In this context, Bernstein analysts said CoreWeave’s results addressed financing concerns, but cautioned that the company could be among those most affected if the shortage of AI computing capacity eases. The observation shows that improved sentiment after the results does not eliminate the business model’s sensitivity to continued strong demand for computing. Reuters reported that Nebius was scheduled to report results before the market opened on Thursday, November 12. Investors will therefore look to the next company’s results to compare demand and operating capacity indicators across the cloud computing sector.
Galaxy Digital closed at $14.11 and Applied Digital at $16.68 on November 10, according to EL7 data. These prices are the close of the session preceding the premarket trading that saw Applied Digital gain, and do not reflect the stock’s movement during Wednesday’s session. Galaxy Digital’s performance on November 11 could not be verified in the available sources. CoreWeave’s results link moves in AI infrastructure stocks to concrete operating and financial data, including revenue, contracted capacity and annual guidance. But the widening net loss and expected capital spending underscore that the sector’s trajectory cannot be measured by demand growth alone.