CoreWeave Shares Jump 14% as AI Infrastructure Demand Drives Revenue Growth

CoreWeave reported second-quarter revenue of $2.58 billion, slightly ahead of the $2.56 billion expected by analysts. Revenue climbed 112% year on year, reflecting accelerating demand from companies seeking computing infrastructure for generative AI.

The company posted an adjusted loss of $1.03 per share, narrower than the $1.20 loss expected by Wall Street. Its net loss, however, widened to $626 million from $290 million a year earlier as CoreWeave continued investing heavily in infrastructure.

Demand remains substantial, with CoreWeave reporting a $104 billion revenue backlog at the end of the quarter. That figure does not include more than $25 billion of additional commitments secured during the third quarter, providing the company with significant visibility into future revenue.

CoreWeave expects third-quarter revenue of between $3.4 billion and $3.6 billion. At the midpoint, that would represent growth of roughly 158% from a year earlier and would be broadly ahead of analysts’ expectations of $3.43 billion.

The company also raised its full-year outlook. CoreWeave now expects $12.4 billion to $13.2 billion in 2026 revenue, compared with its previous forecast of $12 billion to $13 billion, while adjusted operating income is projected at $960 million to $1.15 billion.

Supporting that growth will require another significant increase in investment. CoreWeave expects annual capital expenditures of $35 billion to $39 billion, up from its previous $31 billion to $35 billion forecast, as it targets more than 1.85 gigawatts of active power capacity by year-end.

CoreWeave is positioning itself as a specialized AI cloud provider competing with larger technology companies including Amazon, Google and Microsoft. Its data centers are packed with Nvidia GPUs and other advanced hardware required to train and operate increasingly sophisticated AI models.

The expansion has also created substantial financial exposure. CoreWeave had approximately $35 billion in debt at the end of the quarter, reflecting the enormous upfront costs associated with acquiring chips, building data centers and securing power infrastructure.

Demand for its latest computing capacity nevertheless remains strong. CEO Mike Intrator said pricing and margins for Nvidia Blackwell and Vera Rubin-based products are reaching new highs, while pricing for older-generation hardware remains resilient.

CoreWeave has also secured several large customer commitments. Meta expanded its spending commitment with the company by another $21 billion, while CoreWeave signed a multi-year agreement with Anthropic and secured a $6 billion commitment from Jane Street.

At the same time, competition in AI infrastructure is intensifying. SpaceX has begun offering excess computing capacity, Meta has considered entering the cloud market itself, and specialized providers such as Nebius are also competing for growing AI workloads.

Regulatory challenges represent another potential constraint. Opposition to the energy and infrastructure demands of large data centers is increasing in parts of the U.S., although CoreWeave said current regulatory pushback has not affected the financial guidance it provided.

For investors, the results reinforce both sides of the CoreWeave story. AI infrastructure demand continues to accelerate rapidly, supporting higher revenue, pricing and backlog, but capturing that opportunity requires extraordinary levels of capital spending and leverage.

CoreWeave shares had already gained 26% year to date before the earnings release, outperforming the broader S&P 500. The latest rally suggests investors remain willing to reward companies that can demonstrate tangible revenue growth from the AI infrastructure boom, even as questions around debt, spending and competition continue to grow.