CoreWeave, Super Micro surge on signs of sustained AI buildout

CoreWeave and Super Micro Computer stocks surged on Wednesday, reaching their highest levels since June, following optimistic forecasts from the two AI infrastructure firms. The companies have benefited from the relentless demand for AI infrastructure, as data centers expand their hardware capabilities for generative AI workloads.

CoreWeave's shares climbed by more than 19%, while Super Micro's shares rose by over 13%. Additionally, AI cloud provider Nebius Group surged 23%, and Applied Digital and IREN Ltd increased by 4% and 8%, respectively. Dell's shares also rose by 5%. If the gains continue, CoreWeave could add nearly $8 billion to its market value, and Super Micro could add over $2 billion.

Brokers raised their price targets on both stocks, with CoreWeave's revenue forecasts, adjusted operating profit, and capital spending all raised. The company increased its annual revenue outlook and adjusted operating profit, driven by strong demand for its Nvidia-powered AI infrastructure, allowing it to secure more favorable pricing on new contracts.

CoreWeave's backlog of revenue grew to $104.2 billion in the second quarter, up from $99.4 billion three months prior, excluding over $25 billion in new commitments secured early this quarter.

While some investors may be concerned by the increased capital expenditure guidance, the robust pricing environment suggests that project returns are strengthening, despite rising unit costs. Analysts from MoffettNathanson noted that this could be an encouraging sign for the AI boom, even though capital expenditure is also increasing.

Major U.S. financial institutions are also positioning themselves to capitalize on the data center buildout, with Bank of America pledging $250 billion for U.S. infrastructure financing by July 2027, following a similar announcement from Morgan Stanley. Super Micro forecast 2027 revenue above Wall Street estimates, highlighting the resilience of customer investment in AI servers, with a fourth-quarter gross margin of 17.5%, surpassing its preliminary estimate and initial forecast.