CoreWeave shares surge 20% as strong revenue growth lifts AI cloud stocks

CoreWeave shares surged over 20% on Wednesday, sparking a rally in AI cloud stocks after strong revenue growth eased fears of an artificial intelligence bubble and concerns about heavy borrowing. The company's earnings directly addressed investor worries about debt-funded data-centre expansion, with CoreWeave signaling it would avoid unsecured debt markets and use cash flow from contracts to cover repayments. Nvidia, a major backer, rose 2%, while other neocloud firms like Nebius and Iren also gained. The rally provided relief after weeks of pressure, though analysts warned CoreWeave could be hit hard once AI computing capacity shortages ease. SoftBank's $3.7 billion write-down on equipment and uncertainty surrounding Nvidia CEO Jensen Huang continued to weigh on the sector.