Nebius jumps 28%, CoreWeave 19% as AI infrastructure stocks rally

Nebius surged 28 percent to €214.50 after second-quarter revenue more than quintupled, leading an AI infrastructure rally that lifted the Nasdaq Composite 0.75 percent to 26,642.98.

"Everything we set out to do this quarter, we did. In most cases, we did more," Arkady Volozh, founder and chief executive of Nebius, said in a letter to shareholders.

CoreWeave jumped 18.64 percent to $107.16 after the neocloud provider reported a $104 billion order backlog, while Supermicro climbed 14.43 percent to $36.16 on a fourth-quarter earnings beat and strong first-quarter guidance. Applied Digital and IREN also moved higher, and the Roundhill Memory ETF gained 4 percent as Micron and SanDisk each rose 4 percent.

The rally handed Nebius its sharpest single-session gain since August 2025 and left the stock about 18 percent below its June high of €261.00, with a market value near €40.5 billion. Goldman Sachs reiterated its "Buy" rating with a $286 price target, and Citi reaffirmed its "Buy/High Risk" call at $278.

Nebius Raises Power Target to 5 Gigawatts

Nebius reported revenue of $582.3 million for the quarter ended June, beating the $572.75 million consensus compiled by LSEG, with its core AI cloud business — about 98 percent of group revenue — climbing 514 percent year-over-year to $574.9 million. Annualized recurring revenue reached $3 billion by the end of June, up 58 percent from $1.9 billion in the prior quarter. The company raised its year-end target for contracted power capacity from 4 gigawatts to 5 gigawatts and closed four landmark AI cloud deals, each with an average total contract value above $1 billion, with total contract value growing nearly fourfold from the previous quarter.

The bottom line swung to a GAAP net loss from continuing operations of $190.4 million, or $0.68 per share, from a $584.4 million profit a year earlier, reflecting the cost of building hyperscale infrastructure before revenue catches up. Roughly 70 percent of deals signed in the quarter included customer prepayments covering 50 percent to 60 percent of associated capital expenditure, and the company maintained full-year 2026 revenue guidance of $3 billion to $3.4 billion.

Financing and Short Interest Test the Rally

Nebius is funding its buildout with a $775 million secured credit facility completed July 17, collateralized against deployed GPU hardware and contracted customer payment streams, at SOFR plus 2.50 percent maturing in October 2030. Nvidia disclosed a passive 9.3 percent stake in Nebius in a mid-July filing, while Michael Burry's Scion Asset Management established a short position near $212, citing execution risks in data-center construction.

The broader complex drew support from Fundstrat data showing 87 percent of S&P 500 companies that have reported this earnings season beat estimates, exceeding expectations by a median of 7 percent. Lumentum rose after fiscal fourth-quarter revenue more than doubled to $1.01 billion, and optical peers Coherent and Ciena also gained. Gold climbed 1.21 percent to $4,495 an ounce as the advance spread beyond equities.

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