CoreWeave shares surge 13% in premarket trading as strong quarter and raised outlook ease AI-trade jitters

Shares of CoreWeave jumped 13% in premarket trading Wednesday after the neocloud provider posted quarterly results that topped estimates and raised its full-year outlook, helping to ease investors’ worries about a slowdown in artificial intelligence spending.

Neocloud companies such as CoreWeave, Nebius and IREN have faced heightened scrutiny over the past month as investors question how durable the AI trade really is. Concerns around CoreWeave deepened when spreads on its credit default swaps widened past 11%, a level widely regarded as a sign of financial distress. The move reflected the rising cost of insuring the company’s debt against default.

The company said in a statement Tuesday that third-quarter revenue surged 168% to $3.7 billion.

CEO Michael Intrator described the three months ended Sept. 30 as a “breakout quarter.” He said the growth drew on multiple sources of funding, including financing backed by customer contracts and roughly $9 billion in customer prepayments and deposits.

Shares of CoreWeave were up 13.2% as of 4:18 a.m. ET. Other neocloud stocks also climbed in premarket trading, with Nebius gaining 11.4% and IREN rising 7.9%.

CoreWeave shares this year.

CoreWeave expects $1.275 billion to $1.375 billion in adjusted operating income on $13 billion to $13.3 billion in revenue. Analysts surveyed by Visible Alpha had forecast $1.07 billion in adjusted operating income, while analysts polled by LSEG had projected $12.86 billion in 2026 revenue.

The company has eased concerns about its financing by shifting away from unsecured bond issuance, John Blank, chief equity strategist at Zacks, told CNBC’s “Squawk Box Europe.”

“It might be the bottom for CoreWeave,” Blank said Wednesday. “But the shares are so beaten up, you have to believe at this point there’s more value on the upside than the down.”

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