Oracle Shares Jump as AI Sector Rallies After CoreWeave Results
Key Facts
Shares of artificial intelligence infrastructure companies rose on Nov. 11 after CoreWeave’s results and financing plans buoyed optimism across the sector, Reuters reported. The agency said shares of Nebius, Iren, Oracle and Applied Digital rose between 6% and 14%. EL7 daily closing data showed Oracle ended the session at $128.40, compared with $117.98 on Nov. 10. CoreWeave shares, meanwhile, jumped more than 20% that day, helping spark a rally in AI cloud-computing stocks. The move followed CoreWeave’s announcement of third-quarter results on Nov. 10, for the period ended Sept. 30, 2026.
The results showed CoreWeave’s business expanding rapidly: revenue reached $3.661 billion in the third quarter, compared with $1.365 billion in the same period a year earlier. Net loss widened to $709 million from $110 million a year earlier. Net interest expense also increased to $846 million, compared with $310 million. The company said its backlog of remaining performance obligations stood at about $132.5 billion on Sept. 30. But adjusted operating income margin fell to 10% from 16% in the third quarter of 2025, putting revenue growth in the context of the spending and financing needed to expand computing capacity.
On financing, CoreWeave said it expects about $9 billion in customer prepayments and deposits during the three months following the results announcement. It added that sources of funding for its growth include financing backed by customer contracts and operating cash flow, in addition to those payments. Chief Executive Michael Intrator said the company would not turn to the unsecured debt markets at current yields, adding: "We don't need to." He described contract-backed borrowing as an alternative financing route. The comments highlighted the company’s reliance on customer-linked financing at a time when expanding data centers requires substantial capital.
Reuters linked the stock rebound to concerns that had weighed on AI cloud-computing companies for weeks: that debt-funded expansion could falter if demand for AI services slows. The agency quoted portfolio manager Dan Shaughnessy as saying CoreWeave’s results "directly addressed the fear that drove the entire sell-off." Investors’ questions about whether AI investments can deliver expected returns had also surfaced in a comment by Kim Forrest of Bokeh Capital Partners, cited by Reuters on Oct. 14. That day, Oracle shares fell 7.2% in a sell-off among debt-laden AI companies as rising interest rates intensified financing concerns. The Nov. 11 gains thus came amid broader volatility in valuations of the cost of building infrastructure and the returns expected from it.
CoreWeave raised its 2026 revenue forecast to a range of $13.0 billion to $13.3 billion, and lifted its year-end annualized revenue run-rate forecast to between $20 billion and $21 billion. At the same time, the company expects capital spending of between $37 billion and $39 billion in 2026, after raising the lower end of its previous range from $35 billion to $39 billion. It said the spending adjustment reflects its expectation that it will deploy infrastructure and deliver it to customers faster than planned. These forecasts combine revenue growth and contracted demand on one hand with the need for heavy investment on the other. Financing and spending therefore remained central to investors’ assessment of companies in the sector.
Oracle, meanwhile, said at its investor day on Oct. 28 that it would cap additional financing for its investment cycle between fiscal 2027 and fiscal 2030 at $20 billion, split equally between equity and gross debt, excluding refinancing of existing debt. The company expects capital spending to peak in fiscal 2027 and fiscal 2028, then decline in fiscal 2029, when it is targeting at least $30 billion in free cash flow. Oracle’s free cash flow was negative by $23.7 billion in fiscal 2026 as it continued investing in cloud infrastructure. Its remaining performance obligations also reached $638 billion at the end of the fourth quarter of fiscal 2026, up 363% year over year. Nebius is scheduled to report results before the market opens on Thursday, the next milestone for gauging investor sentiment toward AI infrastructure companies.