The AI build-out doesn’t appear to be slowing anytime soon. At least that’s what you can glean from a trio of earnings after the bell on Tuesday.
CoreWeave (CRWV), Nebius (NBIS), and Supermicro (SMCI) each reported strong quarterly results, sending shares soaring on Wednesday as investors shrugged off AI bubble fears for the time being.
CoreWeave stock jumped as much as 20% Wednesday, while Supermicro was up roughly 15%. Nebius saw the biggest moves, with its stock soaring some 27%.
The general trend among the three? Computing constraints aren’t going anywhere, and businesses are willing to pay up to access as much compute as they can.
During its latest quarter, neocloud provider Nebius saw revenue of $582.3 million, up from $105.1 million in the same period last year. That’s an incredible 454% year-over-year increase. In the quarter, Nebius said it signed four major AI cloud deals, with the average total contract valued at more than $1 billion.
And while the company said it could sell out all of its 2027 capacity, it is holding back some for immediate customer needs.
But Nebius, which is building out data centers full of high-powered graphics processing units (GPUs) that it then rents out to clients, is spending tons of cash buying those chips and other infrastructure.
For the quarter, the company spent $5.7 billion on capital expenditures driven primarily, Nebius said, by GPU purchases and GPU-related hardware.
CoreWeave also had a blowout quarter, with revenue increasing to $2.5 billion from $1.2 billion from the same period last year, a 112% boost.
The company’s revenue backlog, which includes remaining performance obligations, or contracts it has signed but hasn’t been paid for yet, grew 246% to $104.2 billion. CoreWeave also said it has already signed an additional $25 billion in deals that will show up in its backlog in Q3.
Like Nebius, though, CoreWeave is also spending tons of money on chips and other AI infrastructure, putting its capital expenditures for the quarter at $9.4 billion. Adjusted net losses also expanded in the quarter to -$567 million from -$130 million last year.
Supermicro also gave investors something to cheer about, posting better-than-anticipated adjusted earnings per share of $1.70, beating expectations of $1.59. Revenue came up a hair short at $11.1 billion versus a projected $11.2 billion.
But the company also said it will see net sales of between $14.5 billion and $15.5 billion. Wall Street was anticipating $11.9 billion.
Despite the upbeat results and outlook from the three companies, the AI trade is prone to fits and starts, as investors regularly question if we’re nearing the top of the market or still have runway to go.