CoreWeave, Nebius Surge as AI Infrastructure Demand Drives 112% Growth

Purpose-built AI infrastructure is proving to be the engine of the AI supercycle, as CoreWeave's revenue jumped 112 percent to $2.58 billion and Nebius Group's stock climbed 34 percent on 454 percent growth.

"We entered an important inflection point this quarter, as scale expansion began converting into stronger operating leverage while enterprise AI adoption continues to expand," CoreWeave CEO Michael Intrator said.

CoreWeave's adjusted EBITDA reached $1.51 billion with a 59 percent margin, while its backlog hit $104.2 billion, with an additional $25 billion in commitments signed early in Q3. The company added nearly 500 MW of active power capacity in Q2, bringing total active capacity to 1.5 GW, and completed initial deployment validation of Nvidia's Vera Rubin NVL72 clusters. Nebius reported more than $1 billion in computing contracts and raised its 2026 power capacity target to 5 GW.

The results confirm the neocloud thesis that dedicated AI compute providers can convert massive demand into revenue scale. CoreWeave's stock surged 19 percent to $107.73, while Nebius jumped 34 percent to $259.20, as the broader AI infrastructure complex rallied with Nvidia up 3 percent and Super Micro Computer gaining 19 percent.

Backlog Growth Points to Sustained Demand

CoreWeave's $104.2 billion backlog represents 28.7 times the midpoint of its 2026 revenue guidance, showing the multi-year contract base is translating into booked business. The company secured over $25 billion in new customer commitments at the start of Q3, with Meta, OpenAI, and other AI clients continuing to ramp up computing power purchases. Managed inference annual recurring revenue jumped from about $1 million to more than $100 million within months.

The company also completed initial deployment validation of Nvidia's Vera Rubin NVL72, preparing infrastructure for the large-scale entry of next-generation AI chips into the cloud computing market. Contracted power capacity reached approximately 3.7 GW, and the company's compute infrastructure continued to expand through self-built data centers. Nebius, meanwhile, reported adjusted EBITDA profitability in Q2 and more than $1 billion in new computing contracts, with its 2026 power capacity target raised to 5 GW.

The earnings results came as the broader AI infrastructure sector regained momentum. Jim Cramer highlighted the AI data center trade as back in focus, with standout names including Supermicro, Nvidia, Intel, Nebius, Lumentum, and CoreWeave. The July CPI report showing 3.4 percent annual inflation helped ease rate hike concerns, with Fed rate hike odds for September falling to 40 percent from 54 percent. Nvidia climbed 3.03 percent to $224.09, adding about $159 billion to its market capitalization, while Super Micro Computer surged 19 percent to $37.61 after raising its fiscal 2027 revenue outlook to $65 billion to $72 billion. The S&P 500 rose 0.26 percent to 7,748.50, with the Nasdaq gaining 0.54 percent to 26,588.49.

Leverage and Valuation Risks Loom

Despite the operational gains, CoreWeave's net loss widened to $626 million from $290.5 million a year earlier, driven largely by $640 million in interest expense, up from $267 million. The company spent $9.4 billion on capital expenditures in Q2, with a full-year guide of $35 billion to $39 billion. Bears point to the capex treadmill funded by rising debt, with cash generation yet to catch up with the funding bill.

Bank of America and Oppenheimer have both noted that while GPU computing power demand remains strong, the pace of data center construction, infrastructure deployment, and margin improvement are key variables affecting the company's valuation. If capacity online speeds fall below plan, high interest expenses and depreciation costs could continue to suppress profits.

The results reinforce the AI infrastructure investment thesis, with 11 of 14 analysts tracked by Investopedia assigning a Buy rating to CoreWeave and an average price target of around $147. The key question is whether the $104 billion backlog converts to cash flow faster than interest expense accumulates. CoreWeave's stock has gained nearly 50 percent since hitting its 52-week low two weeks ago, and the company's ability to maintain operating leverage while scaling capacity will determine whether the rally extends.

This article is for informational purposes only and does not constitute investment advice.