One day after CoreWeave (CRWV 11.53%) got a boost from the blockbuster deal between Nebius and Microsoft, the stock was soaring again on Wednesday, driven by a combination of factors. First, management talked up its prospects at the Goldman Sachs Communacopia & Technology Conference yesterday.
Oracle also gave blowout guidance in its earnings report last night, boosting artificial intelligence (AI) stocks across the board, and CoreWeave announced a new venture arm yesterday as well. A weak Producer Price Index (PPI) report also bolstered the chances for a Federal Reserve rate cut next week, which also favors CoreWeave.
Altogether, there were plenty of reasons for investors to turn more bullish on CoreWeave, and AI more generally, and the stock was up 19% as of 1:53 p.m. ET.
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The AI trade is back
Typically, when a stock jumps 20%, there is clear news behind the move. However, CoreWeave is a volatile, high-growth stock, and increasingly a battleground, so the double-digit jump makes sense. This comes on the heels of Microsoft committing $17.4 billion to Nebius, and now Oracle, which said in its fiscal first-quarter earnings report last night that it now expects it to grow by 77% and accelerate from there, jumping from $18 billion this year to $144 billion by fiscal 2030.
That stoked plenty of excitement for AI stocks, as Nvidia, Arm, and AMD all rose in response to the news. CoreWeave doesn't work directly with Oracle, and CEO Michael Intrator has called it a formidable competitor.
However, much like the Nebius news, Oracle's forecast seemed to send expectations for CoreWeave even higher, boosting the stock. Additionally, yesterday at the Goldman Sachs conference, Intrator said it sees "enormous, staggering, and unrelenting demand for compute" and called it "overwhelming."
Finally, CoreWeave announced a new venture arm yesterday morning, taking a stake in AI start-ups, many of which are likely to be CoreWeave customers.
What's next for CoreWeave
CoreWeave stock will remain risky and could easily pull back, especially since there's no concrete news supporting today's gains. However, the future for AI cloud infrastructure is looking bright following the news from Nebius and Oracle.
CoreWeave is already delivering blistering growth, and it looks like a good bet that it will continue.
