Stock Market Today, Oct. 28: CoreWeave Surges on Denmark AI Capacity Going Live

CoreWeave, a specialized AI cloud and GPU infrastructure provider, experienced a surge in its stock price on October 28, closing at $63.93, up 7.32%. The increase was primarily driven by capacity news and a broader AI recovery in the market. Pre-market trading saw a volume of 58.3 million shares, which is approximately 53% higher than its three-month average of 38.1 million shares.

CoreWeave went public in 2025 and has seen a 60% growth since then. The S&P 500 closed at 7,748, up 0.32%, while the Nasdaq Composite finished at 26,550, up 0.27%. Other AI infrastructure names such as Nebius Group and Oracle also showed positive movement with gains of 6.96% and 10.73%, respectively.

The surge in CoreWeave's stock was largely attributed to the company having brought new capacity online in Denmark. This development is significant as demand for CoreWeave's AI-ready cloud infrastructure significantly exceeds the available supply. Investors are hopeful that the additional capacity will contribute to the company's revenue generation. However, despite the positive news, CoreWeave continues to grapple with how to fund its ongoing build-out.

The company reported a backlog of $104 billion as of the end of Q2 2026 and secured commitments worth at least $25 billion in Q3. Nevertheless, CoreWeave's debt levels have been a cause for concern. As of the end of Q2, the cloud stock had accumulated over $35 billion in total debt, with some unsecured debt reaching distress levels, with yields surpassing 15%. This situation has raised questions about the company's ability to secure additional funding.

While CoreWeave can currently sell its capacity without issues, investors are left to wonder how the company would fare if there were a disruption in AI growth. Despite these challenges, the company is managing its debt, and the new capacity should help boost its revenue. Still, CoreWeave's ability to sustain growth in the face of rising interest rates remains a key test. Investors are advised to keep a close eye on the company's earnings reports to gauge its progress in this regard.