CoreWeave shares jumped 13% in premarket trading Wednesday after the neocloud posted quarterly earnings that beat estimates and raised its guidance for the year.
Neoclouds such as CoreWeave, Nebius and IREN have come under scrutiny this month as investors assessed the sustainability of the AI trade. CoreWeave, in particular, sparked alarm when spreads on its CDS widened past 11% , generally viewed as a distress level, as investors have to pay up for protection against default.
Revenue jumped 168% to $3.7 billion in the third quarter, the company said in a Tuesday statement .
The three months to Sept. 30 marked a "breakout quarter" for CoreWeave, CEO Michael Intrator said, adding that growth was supported by multiple sources of funding, including financing backed by customer contracts and around $9 billion in customer prepayments and deposits.
Shares were 13.2% higher as of 4:18 a.m. ET. Other neclouds were also higher in premarket trading, with Nebius up 11.4% and Iren up 7.9%.
CoreWeave expects $1.275 billion to $1.375 billion in adjusted operating income on $13 billion to $13.3 billion in revenue. Analysts surveyed by Visible Alpha were looking for $1.07 billion in adjusted operating income, and analysts polled by LSEG had expected $12.86 billion in 2026 revenue.
The neocloud has done well to allay concerns about financing by moving away from unsecured bond financing, Zacks Chief Equity Strategist John Blank told CNBC's "Squawk Box Europe."
"It might be the bottom for CoreWeave," Blank said Wednesday. "But the shares are so beaten up, you have to believe at this point there's more value on the upside than the down."
Tune in at 9:50 a.m. ET as CoreWeave CO Michael Intrator joins CNBC TV to discuss the company's earnings. Watch in real time on CNBC+ or the CNBC Pro stream.
— CNBC's Jordan Novet contributed to this report.
