CoreWeave Says Its AI Demand Is 10 Times Its Capacity Through 2027. I Think Micron Stock Is Still Worth Buying.
The AI cloud provider can't add capacity fast enough. Will the memory maker sell more chips because of it?
Micron Technology's shares surged over 10% on November 11, trading near $820, following artificial intelligence (AI) cloud provider CoreWeave's third-quarter results. CoreWeave's CEO, Michael Intrator, stated that the company has 10 times more qualified demand than available capacity through the end of 2027. Despite Micron shares dropping by around 23% over November 4 and 5, CoreWeave did not mention memory on its earnings call, and the link to Micron's sales is less direct than the stock's jump implies.
CoreWeave's revenue grew by 168% year over year to approximately $3.7 billion, while its revenue backlog hit around $132.5 billion as of September 30. The company also raised its 2026 revenue outlook to $13.0 billion to $13.3 billion, which is higher than the previously given range. CoreWeave's pricing has increased by approximately 25% in July and an additional 10% later in the quarter, which has helped offset cost increases.
However, the company's supply limitations and pricing strategy are expected to impact the growth of AI demand rather than directly influence Micron's sales.
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